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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Phase of the business cycle where output and employment are at their lowest levels






2. Inflation caused by excess demand in the economy






3. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP






4. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer






5. Caused by the actions of people who have come to expect a certain amount of inflation in the economy






6. Phase of the business cycle which is characterized by a period of at least six months where there is a decline in total output - income and employment






7. Personal income less income taxes






8. Shows how money and goods and services flow between the various markets and players in the economy






9. Cyclical unemployment is at 0






10. Cost of living allowance






11. All investment spending by government and business firms






12. Results from laborers having a mismatched skill set with what is demanded by the current labor market






13. The sale of goods and services to households






14. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories






15. Periodic and predictable economic changes






16. Output measured at current prices - and thus unadjusted figure for GDP






17. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP






18. Used for comparing the price of a specific market basket of goods and services in one particular year to the price in a base year






19. The percentage of unemployed workers in the civilian labor force






20. Excess unemployment caused because the economy deviates from the long run output potential of the economy






21. Measures the amount of goods and services one's money can buy; measures purchasing power






22. GDI = w + i + r + pi + misc






23. A basic accounting measure of total production of goods and services of the national economy in one year






24. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions






25. Monetary






26. Used to calculate how long it will take for prices to double; divide the number 70 by the annual inflation rate to find out how many years it will take for prices to double






27. Frictional + structural unemployment






28. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs


29. Inflation arising from the supply or cost side of the economy






30. All people living in a society who are of legal age to work






31. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)






32. The civilian labor force expressed as a percentage of the labor force population






33. Total income earned by resource suppliers for their contributions to the production of the GNP






34. The number of dollars one receives as wages - rent - interest or profit






35. Income earned that is available to resource suppliers and others before payment of personal taxes






36. Those who are on ______ incomes are hurt most by inflation






37. Maximum output of business cycle






38. The total net sales of goods sold abroad minus the total net spent on purchases from other countries






39. A person who is available for and looking for work - but has none






40. Temporary and associated with turnover in the labor market






41. (base year basket valued at current year prices/base year basket valued at base year prices) x 100






42. A sustained rise in the general price level of an economy






43. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods






44. Consumption - investment - government - and net exports






45. Income earned by the factors of production for their current contributions to production; total dollar value of all final goods and services produced for consumption in society during a particular time period






46. Measures GDP by adding up all that is spent by various consumers on this year's total output of final goods and services; also called gross national expenditure (GNE)






47. GDP = C + Ig + G + Xn






48. The price index that puts all goods and services in the market basket; measures the overall price level change - not just a change in price of typical consumer goods






49. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health






50. Calculate spending and income: what is spent on a product is received as income by those who contributed to the product's production. the spending amount and income amount should equal one another.