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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 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






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






3. Inflation caused by excess demand in the economy






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






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






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






7. Personal income less income taxes






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


9. Monetary






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






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






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






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






14. Output sacrificed due to unemployment






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






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






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. Frictional + structural unemployment






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






20. 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.






21. Cost of living allowance






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






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






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






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






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






27. The sale of goods and services to households






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






29. Consumption - investment - government - and net exports






30. Recurrent ups and downs of economic activity






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






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






33. 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






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






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






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






37. 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






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






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






40. 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)






41. The average of all prices is falling






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






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






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






45. GDP = C + Ig + G + Xn






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






47. All investment spending by government and business firms






48. Cyclical unemployment is at 0






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






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