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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. 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






2. Frictional + structural unemployment






3. Personal income less income taxes






4. Monetary






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






6. Output sacrificed due to unemployment






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






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






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






10. Inflation caused by excess demand in the economy






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






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






13. Temporary and associated with turnover in the labor market






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






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






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






17. Maximum output of business cycle






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






19. 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)






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






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






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






23. GDP = C + Ig + G + Xn






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






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






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






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






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






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






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






31. 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.






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






33. 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






34. 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






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






36. Cyclical unemployment is at 0






37. All investment spending by government and business firms






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






39. The sale of goods and services to households






40. Cost of living allowance






41. The average of all prices is falling






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






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






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






45. Periodic and predictable economic changes






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






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






48. Recurrent ups and downs of economic activity






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






50. 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