Test your basic knowledge |

CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
Instructions:
  • Answer 50 questions in 30 minutes. 2 minutes extra for reading the instructions.
  • 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. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs


2. 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






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






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






5. Periodic and predictable economic changes






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






7. GDP = C + Ig + G + Xn






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






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






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






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






12. Frictional + structural unemployment






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






14. Temporary and associated with turnover in the labor market






15. 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






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






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






18. All investment spending by government and business firms






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






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






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






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






23. Recurrent ups and downs of economic activity






24. Cyclical unemployment is at 0






25. Monetary






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






27. Inflation caused by excess demand in the economy






28. The sale of goods and services to households






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






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






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






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






33. Personal income less income taxes






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






35. 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)






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






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






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






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






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






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






42. 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






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






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






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






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






47. 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.






48. The average of all prices is falling






49. Consumption - investment - government - and net exports






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