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






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






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






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






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






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






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






8. Monetary






9. Output sacrificed due to unemployment






10. Consumption - investment - government - and net exports






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






12. Cyclical unemployment is at 0






13. 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






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






15. 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






16. Cost of living allowance






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






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






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






20. Periodic and predictable economic changes






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






22. Inflation caused by excess demand in the economy






23. 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






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






25. The sale of goods and services to households






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






27. 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)






28. GDP = C + Ig + G + Xn






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






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






31. Maximum output of business cycle






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






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






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






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






36. 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.






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






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






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






40. All investment spending by government and business firms






41. Temporary and associated with turnover in the labor market






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






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






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






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






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






47. The average of all prices is falling






48. 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






49. Recurrent ups and downs of economic activity






50. Frictional + structural unemployment