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






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






3. Consumption - investment - government - and net exports






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






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






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






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






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






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






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






11. 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)






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






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






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






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






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






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






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






19. Inflation caused by excess demand in the economy






20. 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






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






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






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






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






25. 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






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






27. Cyclical unemployment is at 0






28. Periodic and predictable economic changes






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


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






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






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






33. Maximum output of business cycle






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






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






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






37. Frictional + structural unemployment






38. All investment spending by government and business firms






39. Recurrent ups and downs of economic activity






40. Personal income less income taxes






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






42. 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






43. Monetary






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






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






46. The sale of goods and services to households






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






48. GDP = C + Ig + G + Xn






49. Temporary and associated with turnover in the labor market






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