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






2. The average of all prices is falling






3. 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






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






5. Recurrent ups and downs of economic activity






6. GDP = C + Ig + G + Xn






7. Frictional + structural unemployment






8. Output sacrificed due to unemployment






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






10. Inflation caused by excess demand in the economy






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






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






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






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






15. Monetary






16. Periodic and predictable economic changes






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






18. 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)






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






20. 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






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






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






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






24. Temporary and associated with turnover in the labor market






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






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






27. 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






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






29. Cost of living allowance






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






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






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






33. Maximum output of business cycle






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






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






36. Cyclical unemployment is at 0






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






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






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






40. Consumption - investment - government - and net exports






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






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


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






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






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






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






47. 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






48. The sale of goods and services to households






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






50. All investment spending by government and business firms