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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. Recurrent ups and downs of economic activity






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






4. 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






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






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






7. Monetary






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






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






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






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






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






13. Inflation caused by excess demand in the economy






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






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






16. Output sacrificed due to unemployment






17. Cyclical unemployment is at 0






18. Temporary and associated with turnover in the labor market






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. Consumption - investment - government - and net exports






21. 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






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






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






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






25. GDP = C + Ig + G + Xn






26. Frictional + structural unemployment






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






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






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






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






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






32. 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






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






34. The sale of goods and services to households






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






36. 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






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






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






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






40. 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






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


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






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






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






45. The average of all prices is falling






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






47. Personal income less income taxes






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






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






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