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Test your basic knowledge |

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. Cyclical unemployment is at 0






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






3. Output sacrificed due to unemployment






4. GDP = C + Ig + G + Xn






5. Phase of the business cycle where output and employment begin to move toward full employment






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






7. Maximum output of business cycle






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






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






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






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






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






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


14. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military






15. Periodic and predictable economic changes






16. All investment spending by government and business firms






17. Output measured at base year prices - and thus adjusted






18. Inflation caused by excess demand in the economy






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






20. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP






21. 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






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






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






24. 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






25. Frictional + structural unemployment






26. Recurrent ups and downs of economic activity






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






28. Monetary






29. Temporary and associated with turnover in the labor market






30. 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






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






32. Cost of living allowance






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






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






35. Personal income less income taxes






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






37. Consumption - investment - government - and net exports






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






39. The sale of goods and services to households






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






41. 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






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






43. Phase of the business cycle where output and employment are at their lowest levels






44. 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.






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






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. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc






48. The average of all prices is falling






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






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






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