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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. The sale of goods and services to households






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






3. 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






4. GDP = C + Ig + G + Xn






5. Frictional + structural unemployment






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






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






8. The average of all prices is falling






9. Consumption - investment - government - and net exports






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






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






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






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






14. Cyclical unemployment is at 0






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






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






17. Output sacrificed due to unemployment






18. Inflation caused by excess demand in the economy






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






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






21. 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)






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






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






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






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






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






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






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






29. Personal income less income taxes






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






31. Maximum output of business cycle






32. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance






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






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


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






36. 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






37. Cost of living allowance






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






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






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






41. Temporary and associated with turnover in the labor market






42. All investment spending by government and business firms






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






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






45. 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






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






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






48. Recurrent ups and downs of economic activity






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






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