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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 percentage of unemployed workers in the civilian labor force






2. Cyclical unemployment is at 0






3. Recurrent ups and downs of economic activity






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






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






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






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






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






9. All investment spending by government and business firms






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






11. The sale of goods and services to households






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






13. Monetary






14. GDP = C + Ig + G + Xn






15. Frictional + structural unemployment






16. 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






17. Consumption - investment - government - and net exports






18. The average of all prices is falling






19. 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






20. Periodic and predictable economic changes






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






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






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






24. 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)






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






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






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






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






29. 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






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






31. Personal income less income taxes






32. Output sacrificed due to unemployment






33. Temporary and associated with turnover in the labor market






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






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






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






37. Cost of living allowance






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






39. 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






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






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






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






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






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






45. Maximum output of business cycle






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






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






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






49. 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






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