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






2. The sale of goods and services to households






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






4. Cyclical unemployment is at 0






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






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






7. Frictional + structural unemployment






8. Cost of living allowance






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






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






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






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






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






14. Maximum output of business cycle






15. Personal income less income taxes






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






17. Periodic and predictable economic changes






18. 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






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






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






21. GDP = C + Ig + G + Xn






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






23. Output sacrificed due to unemployment






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






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






26. Inflation caused by excess demand in the economy






27. Consumption - investment - government - and net exports






28. 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.






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






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






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






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






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






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






35. Monetary






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


37. 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






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






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






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






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






42. 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)






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






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






45. 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






46. The average of all prices is falling






47. All investment spending by government and business firms






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






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






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