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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. GDP = C + Ig + G + Xn






2. 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






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






4. Monetary






5. Inflation caused by excess demand in the economy






6. Maximum output of business cycle






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






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






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






10. 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






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






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






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






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






15. Frictional + structural unemployment






16. 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.






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






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






19. Cost of living allowance






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






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






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






23. Periodic and predictable economic changes






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






25. Recurrent ups and downs of economic activity






26. 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






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






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






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






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






31. Consumption - investment - government - and net exports






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






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






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






35. Output sacrificed due to unemployment






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






37. 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)






38. Cyclical unemployment is at 0






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






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


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






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






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






44. All investment spending by government and business firms






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






46. 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






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






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






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






50. 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