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






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






3. 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






4. 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






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






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


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






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






9. Cost of living allowance






10. All investment spending by government and business firms






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






12. 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






13. Periodic and predictable economic changes






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






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






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






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






18. Temporary and associated with turnover in the labor market






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






20. Consumption - investment - government - and net exports






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






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






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






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






25. Personal income less income taxes






26. Frictional + structural unemployment






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






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






29. Inflation caused by excess demand in the economy






30. 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






31. 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






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






33. Monetary






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






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






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






37. GDP = C + Ig + G + Xn






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






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






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






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






42. 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.






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






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






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






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






47. Output sacrificed due to unemployment






48. Recurrent ups and downs of economic activity






49. The sale of goods and services to households






50. The average of all prices is falling