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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. Inflation caused by excess demand in the economy






3. 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






4. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






11. 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






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






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






14. Output sacrificed due to unemployment






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






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






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






18. The average of all prices is falling






19. 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






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






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






22. Monetary






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






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






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






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






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






28. Cyclical unemployment is at 0






29. Maximum output of business cycle






30. GDP = C + Ig + G + Xn






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






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






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






34. All investment spending by government and business firms






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






36. Periodic and predictable economic changes






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






38. Cost of living allowance






39. Personal income less income taxes






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






41. 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)






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






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






44. Recurrent ups and downs of economic activity






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






46. Frictional + structural unemployment






47. Consumption - investment - government - and net exports






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






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






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