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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. Maximum output of business cycle






2. Frictional + structural unemployment






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






4. Monetary






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






6. Cyclical unemployment is at 0






7. Cost of living allowance






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






9. Temporary and associated with turnover in the labor market






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






11. 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






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






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






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






15. 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)






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






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






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






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






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






21. The sale of goods and services to households






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






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






24. Inflation caused by excess demand in the economy






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






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






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






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






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






30. 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






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






32. 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






33. All investment spending by government and business firms






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






35. Personal income less income taxes






36. 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






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






40. Periodic and predictable economic changes






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






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






43. The average of all prices is falling






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






45. Recurrent ups and downs of economic activity






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






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






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






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






50. 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