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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
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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. GDI = w + i + r + pi + misc
participation rate
price index
demand pull
GDI equation
2. 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
final goods
rule of 70
GDP equation (expenditure approach)
frictional unemployment
3. Inflation arising from the supply or cost side of the economy
net export expenditures
cost push
expansion / recovery
national income
4. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
nominal income
Consumer Price Index (CPI)
GDP gap
5. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
cost push
unemployment rate
Consumer Price Index (CPI)
fixed income
6. Consumption - investment - government - and net exports
disposable income
expenditure approach
four kinds of spending
government expenditures
7. Frictional + structural unemployment
Gross National Product (GNP)
labor force
natural employment
income approach
8. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
intermediate goods
real GDP
national income accounting
CPI equation
9. Measures the amount of goods and services one's money can buy; measures purchasing power
intermediate goods
four kinds of spending
real income
labor force
10. Income earned that is available to resource suppliers and others before payment of personal taxes
cost push
personal income
GDP (Gross Domestic Product)
three kinds of Ig expenditures
11. All investment spending by government and business firms
cost push
three kinds of Ig expenditures
labor force
gross investment expenditures
12. Those who are on ______ incomes are hurt most by inflation
expansion / recovery
cyclical / deficit demand unemployment
nominal GDP
fixed income
13. Maximum output of business cycle
GDP measures the market value of annual output and it is a __________ measure.
how to determine GDP
peak
COLA
14. Output measured at current prices - and thus unadjusted figure for GDP
trough
four kinds of spending
nominal GDP
nominal income
15. A person who is available for and looking for work - but has none
demand pull
cyclical / deficit demand unemployment
unemployed
national income
16. Personal income less income taxes
intermediate goods
GDP (Gross Domestic Product)
disposable income
price index
17. Periodic and predictable economic changes
structural unemployment
intermediate goods
seasonal changes
cost push
18. 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.
deflation
seasonal changes
unemployment rate
how to determine GDP
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)
natural employment
national income
expenditure approach
nominal GDP
20. Output sacrificed due to unemployment
demand pull
GDP gap
unemployment rate
structural / expectational inflation
21. A basic accounting measure of total production of goods and services of the national economy in one year
seasonal unemployment
natural employment
fixed income
GDP (Gross Domestic Product)
22. The number of dollars one receives as wages - rent - interest or profit
structural / expectational inflation
nominal income
real GDP
disposable income
23. Cyclical unemployment is at 0
real GDP
full employment
price index
business cycle
24. The percentage of unemployed workers in the civilian labor force
GDP equation (expenditure approach)
GDI equation
how to determine GDP
unemployment rate
25. 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
GDP Price Index
frictional unemployment
structural / expectational inflation
deflation
26. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
unemployment rate
GDP gap
demand pull
five sources of income
27. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
income approach
GDP equation (expenditure approach)
three kinds of Ig expenditures
nominal income
28. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
national income
seasonal unemployment
government expenditures
trough
29. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
intermediate goods
gross investment expenditures
largest category of GDI
civilian labor force
30. The sale of goods and services to households
inflation
participation rate
national income
consumption expenditures
31. The average of all prices is falling
structural unemployment
fixed income
deflation
price index
32. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
real GDP
seasonal unemployment
consumption expenditures
participation rate
33. 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
price index
government expenditures
demand pull
peak
34. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
COLA
cost push
final goods
business cycle
35. A sustained rise in the general price level of an economy
inflation
largest category of GDI
deflation
trough
36. Phase of the business cycle where output and employment begin to move toward full employment
trough
structural unemployment
expansion / recovery
four kinds of spending
37. Cost of living allowance
cost push
demand pull
expansion / recovery
COLA
38. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
GDP Price Index
nominal income
non-production transactions
structural unemployment
39. Total income earned by resource suppliers for their contributions to the production of the GNP
unemployment rate
three kinds of Ig expenditures
Gross National Product (GNP)
national income
40. 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
Gross National Product (GNP)
expansion / recovery
GDP (Gross Domestic Product)
deflation
41. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
consumption expenditures
structural unemployment
net export expenditures
circular flow diagram
42. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
consumption expenditures
frictional unemployment
three kinds of Ig expenditures
GDP Price Index
43. Results from laborers having a mismatched skill set with what is demanded by the current labor market
GDP (Gross Domestic Product)
deflation
national income accounting
structural unemployment
44. GDP = C + Ig + G + Xn
GDP equation (expenditure approach)
rule of 70
Okun's Law
civilian labor force
45. The civilian labor force expressed as a percentage of the labor force population
natural employment
seasonal unemployment
GDP equation (expenditure approach)
participation rate
46. Inflation caused by excess demand in the economy
rule of 70
final goods
demand pull
five sources of income
47. Monetary
participation rate
non-production transactions
GDP measures the market value of annual output and it is a __________ measure.
real GDP
48. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
nominal income
consumption expenditures
GDP Price Index
CPI equation
49. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
non-production transactions
labor force
intermediate goods
participation rate
50. Excess unemployment caused because the economy deviates from the long run output potential of the economy
cyclical / deficit demand unemployment
personal income
government expenditures
five sources of income