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






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






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






6. Inflation caused by excess demand in the economy






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






8. 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.






9. Monetary






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






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


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






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






14. Output sacrificed due to unemployment






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






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






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






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






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






20. Recurrent ups and downs of economic activity






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






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






23. 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






24. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






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






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






33. All investment spending by government and business firms






34. Personal income less income taxes






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






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






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






38. Frictional + structural unemployment






39. Maximum output of business cycle






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






41. 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






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






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






44. The average of all prices is falling






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






46. 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






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






48. Periodic and predictable economic changes






49. Cost of living allowance






50. The sale of goods and services to households