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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. Cyclical unemployment is at 0






2. 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)






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






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






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






6. 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






7. Monetary






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






9. Periodic and predictable economic changes






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






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






12. 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






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






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






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






16. Inflation caused by excess demand in the economy






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






18. 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






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






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






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






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






23. Personal income less income taxes






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






25. Temporary and associated with turnover in the labor market






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






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






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






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






30. 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






31. Cost of living allowance






32. 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






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






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






35. All investment spending by government and business firms






36. 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.






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






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


39. Output sacrificed due to unemployment






40. Recurrent ups and downs of economic activity






41. Consumption - investment - government - and net exports






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






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






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






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






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






47. Maximum output of business cycle






48. GDP = C + Ig + G + Xn






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






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