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






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






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






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






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






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






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






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






9. Inflation caused by excess demand in the economy






10. 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






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






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






14. All investment spending by government and business firms






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






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






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






18. Periodic and predictable economic changes






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






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






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






22. Personal income less income taxes






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






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






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






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


27. Maximum output of business cycle






28. GDP = C + Ig + G + Xn






29. Consumption - investment - government - and net exports






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






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






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






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






34. Temporary and associated with turnover in the labor market






35. Cost of living allowance






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






37. Frictional + structural unemployment






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






39. Output sacrificed due to unemployment






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






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






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






43. 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






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






45. 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)






46. Recurrent ups and downs of economic activity






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






48. The average of all prices is falling






49. 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






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