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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 average of all prices is falling






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






3. 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






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






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






6. Maximum output of business cycle






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






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






9. Monetary






10. 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






11. Cyclical unemployment is at 0






12. Temporary and associated with turnover in the labor market






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






14. GDP = C + Ig + G + Xn






15. Frictional + structural unemployment






16. 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






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






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






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






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






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






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






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






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






25. All investment spending by government and business firms






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






27. Periodic and predictable economic changes






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






29. Cost of living allowance






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






31. Inflation caused by excess demand in the economy






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






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






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






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






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






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






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


39. 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






40. Recurrent ups and downs of economic activity






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






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. 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)






44. Personal income less income taxes






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






46. The sale of goods and services to households






47. Consumption - investment - government - and net exports






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






49. Output sacrificed due to unemployment






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