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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 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






2. Inflation caused by excess demand in the economy






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






4. Cyclical unemployment is at 0






5. Consumption - investment - government - and net exports






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






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






8. Periodic and predictable economic changes






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






10. Temporary and associated with turnover in the labor market






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


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






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






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






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






16. Output sacrificed due to unemployment






17. Frictional + structural unemployment






18. 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






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






20. 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.






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






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






23. 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






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






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






26. 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






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






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






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






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






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






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






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






34. The average of all prices is falling






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






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






37. 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)






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






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






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






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






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






43. Monetary






44. Maximum output of business cycle






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






46. 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






47. Recurrent ups and downs of economic activity






48. The sale of goods and services to households






49. All investment spending by government and business firms






50. GDP = C + Ig + G + Xn