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






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






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






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






5. Cost of living allowance






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






7. Monetary






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






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






10. Temporary and associated with turnover in the labor market






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






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






13. Frictional + structural unemployment






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






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






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






17. Inflation caused by excess demand in the economy






18. 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






19. Recurrent ups and downs of economic activity






20. Consumption - investment - government - and net exports






21. All investment spending by government and business firms






22. 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






23. Personal income less income taxes






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






25. 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.






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






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






28. Output sacrificed due to unemployment






29. 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






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






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






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






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






34. Periodic and predictable economic changes






35. Cyclical unemployment is at 0






36. 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)






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






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






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






40. 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






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


42. 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






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






44. GDP = C + Ig + G + Xn






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






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






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






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






49. Maximum output of business cycle






50. The sale of goods and services to households