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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 sale of goods and services to households






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






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






4. Periodic and predictable economic changes






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






6. 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)






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






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






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






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






11. Maximum output of business cycle






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






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






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






15. 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






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






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






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






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






20. Frictional + structural unemployment






21. The average of all prices is falling






22. Temporary and associated with turnover in the labor market






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






24. 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






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






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






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






28. 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






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






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






31. 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






32. GDP = C + Ig + G + Xn






33. Consumption - investment - government - and net exports






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






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






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






37. Output sacrificed due to unemployment






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






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. The percentage of unemployed workers in the civilian labor force






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






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






43. Inflation caused by excess demand in the economy






44. Monetary






45. All investment spending by government and business firms






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






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






48. Personal income less income taxes






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






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