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






2. The sale of goods and services to households






3. Cost of living allowance






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






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






6. Inflation caused by excess demand in the economy






7. 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






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






9. The average of all prices is falling






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






11. All investment spending by government and business firms






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






13. Maximum output of business cycle






14. Cyclical unemployment is at 0






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






16. Monetary






17. Recurrent ups and downs of economic activity






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






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






20. 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






21. 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






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






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






24. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






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


32. Frictional + structural unemployment






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






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






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






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






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






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






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






41. GDP = C + Ig + G + Xn






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






43. 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






44. Periodic and predictable economic changes






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






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






47. Output sacrificed due to unemployment






48. Personal income less income taxes






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






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