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






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






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






4. Output sacrificed due to unemployment






5. Personal income less income taxes






6. 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






7. The sale of goods and services to households






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






9. 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)






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






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






12. 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






13. The average of all prices is falling






14. 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






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






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






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






18. Frictional + structural unemployment






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






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






21. Periodic and predictable economic changes






22. GDP = C + Ig + G + Xn






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






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






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






26. Inflation caused by excess demand in the economy






27. Temporary and associated with turnover in the labor market






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






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






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






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






32. Consumption - investment - government - and net exports






33. Cost of living allowance






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






35. Cyclical unemployment is at 0






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






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


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






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






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






41. Maximum output of business cycle






42. 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






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






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






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






46. 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.






47. Monetary






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






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






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