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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. Output sacrificed due to unemployment






2. Cyclical unemployment is at 0






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






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






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






6. Monetary






7. Frictional + structural unemployment






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






9. 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






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






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






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






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






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






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






16. 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.






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






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






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






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






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






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






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






24. Maximum output of business cycle






25. 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






26. 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)






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






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






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






30. Inflation caused by excess demand in the economy






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






32. Cost of living allowance






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






34. All investment spending by government and business firms






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






36. Consumption - investment - government - and net exports






37. The sale of goods and services to households






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






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






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






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






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






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






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






45. Personal income less income taxes






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






47. The average of all prices is falling






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






49. Periodic and predictable economic changes






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