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






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






3. Cyclical unemployment is at 0






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






5. The average of all prices is falling






6. 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






7. The sale of goods and services to households






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






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






10. 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






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






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






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






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






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






16. Recurrent ups and downs of economic activity






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






18. 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






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






20. Consumption - investment - government - and net exports






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






22. Frictional + structural unemployment






23. 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






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






25. Monetary






26. Personal income less income taxes






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






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






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






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






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






32. All investment spending by government and business firms






33. 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)






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






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






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






37. 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






38. Maximum output of business cycle






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






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






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






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






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






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


45. 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.






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






47. Temporary and associated with turnover in the labor market






48. Inflation caused by excess demand in the economy






49. Cost of living allowance






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