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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. Output measured at current prices - and thus unadjusted figure for GDP
nominal GDP
trough
real GDP
structural / expectational inflation
2. A basic accounting measure of total production of goods and services of the national economy in one year
GDP (Gross Domestic Product)
seasonal changes
circular flow diagram
five sources of income
3. A person who is available for and looking for work - but has none
unemployed
price index
GDP Price Index
recession
4. Those who are on ______ incomes are hurt most by inflation
fixed income
COLA
consumption expenditures
cyclical / deficit demand unemployment
5. The average of all prices is falling
business cycle
deflation
natural employment
real GDP
6. All investment spending by government and business firms
final goods
gross investment expenditures
expansion / recovery
labor force
7. Maximum output of business cycle
disposable income
five sources of income
seasonal unemployment
peak
8. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
recession
natural employment
non-production transactions
expenditure approach
9. 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
recession
GDP measures the market value of annual output and it is a __________ measure.
income approach
GDP equation (expenditure approach)
10. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
government expenditures
price index
nominal GDP
GDP (Gross Domestic Product)
11. Frictional + structural unemployment
natural employment
civilian labor force
business cycle
real income
12. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
real GDP
non-production transactions
net export expenditures
three kinds of Ig expenditures
13. GDI = w + i + r + pi + misc
participation rate
gross investment expenditures
CPI equation
GDI equation
14. A sustained rise in the general price level of an economy
structural unemployment
cyclical / deficit demand unemployment
largest category of GDI
inflation
15. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
Consumer Price Index (CPI)
business cycle
trough
peak
16. The sale of goods and services to households
consumption expenditures
cyclical / deficit demand unemployment
circular flow diagram
frictional unemployment
17. Cost of living allowance
real income
seasonal changes
COLA
GDP gap
18. Total income earned by resource suppliers for their contributions to the production of the GNP
nominal income
national income
trough
COLA
19. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
20. The percentage of unemployed workers in the civilian labor force
unemployment rate
inflation
full employment
how to determine GDP
21. Monetary
GDP (Gross Domestic Product)
gross investment expenditures
GDP measures the market value of annual output and it is a __________ measure.
circular flow diagram
22. Consumption - investment - government - and net exports
structural / expectational inflation
four kinds of spending
intermediate goods
price index
23. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
unemployment rate
Consumer Price Index (CPI)
final goods
deflation
24. Phase of the business cycle where output and employment are at their lowest levels
nominal GDP
consumption expenditures
participation rate
trough
25. 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
rule of 70
demand pull
intermediate goods
price index
26. Output sacrificed due to unemployment
structural unemployment
national income accounting
nominal GDP
GDP gap
27. Cyclical unemployment is at 0
full employment
government expenditures
net export expenditures
demand pull
28. GDP = C + Ig + G + Xn
non-production transactions
unemployed
frictional unemployment
GDP equation (expenditure approach)
29. The number of dollars one receives as wages - rent - interest or profit
national income
nominal income
final goods
civilian labor force
30. Output measured at base year prices - and thus adjusted
nominal income
real GDP
GDP equation (expenditure approach)
fixed income
31. 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
price index
GDP Price Index
circular flow diagram
national income accounting
32. Temporary and associated with turnover in the labor market
five sources of income
GDP (Gross Domestic Product)
four kinds of spending
frictional unemployment
33. Recurrent ups and downs of economic activity
Gross National Product (GNP)
business cycle
real GDP
final goods
34. Inflation caused by excess demand in the economy
nominal income
demand pull
labor force
non-production transactions
35. 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
cost push
unemployment rate
Gross National Product (GNP)
final goods
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)
Gross National Product (GNP)
expenditure approach
three kinds of Ig expenditures
fixed income
37. Periodic and predictable economic changes
seasonal changes
gross investment expenditures
GDP gap
seasonal unemployment
38. Measures the amount of goods and services one's money can buy; measures purchasing power
fixed income
largest category of GDI
GDI equation
real income
39. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
civilian labor force
how to determine GDP
real GDP
national income accounting
40. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
GDP (Gross Domestic Product)
GDP measures the market value of annual output and it is a __________ measure.
Okun's Law
seasonal unemployment
41. Personal income less income taxes
disposable income
CPI equation
GDP gap
peak
42. Shows how money and goods and services flow between the various markets and players in the economy
peak
business cycle
circular flow diagram
recession
43. The civilian labor force expressed as a percentage of the labor force population
participation rate
cost push
peak
deflation
44. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
peak
CPI equation
disposable income
five sources of income
45. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
net export expenditures
GDI equation
structural / expectational inflation
GDP (Gross Domestic Product)
46. Phase of the business cycle where output and employment begin to move toward full employment
full employment
expansion / recovery
national income
GDP (Gross Domestic Product)
47. 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.
cost push
GDP measures the market value of annual output and it is a __________ measure.
unemployed
how to determine GDP
48. Results from laborers having a mismatched skill set with what is demanded by the current labor market
net export expenditures
GDP (Gross Domestic Product)
government expenditures
structural unemployment
49. Excess unemployment caused because the economy deviates from the long run output potential of the economy
final goods
cyclical / deficit demand unemployment
expenditure approach
labor force
50. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
expansion / recovery
GDP gap
intermediate goods
largest category of GDI