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






2. Maximum output of business cycle






3. Consumption - investment - government - and net exports






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






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






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






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






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






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






10. Inflation caused by excess demand in the economy






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






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. Frictional + structural unemployment






14. GDP = C + Ig + G + Xn






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






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






17. 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






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






19. The sale of goods and services to households






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






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






22. Periodic and predictable economic changes






23. Personal income less income taxes






24. All investment spending by government and business firms






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






26. The average of all prices is falling






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






28. 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.






29. Cost of living allowance






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






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






32. Cyclical unemployment is at 0






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






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






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






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






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


38. 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






39. Output sacrificed due to unemployment






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






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






42. 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






43. Monetary






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






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






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






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






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






49. Temporary and associated with turnover in the labor market






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