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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. 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
cost push
recession
GDP gap
GDP measures the market value of annual output and it is a __________ measure.
2. Periodic and predictable economic changes
seasonal changes
largest category of GDI
structural unemployment
unemployed
3. The sale of goods and services to households
recession
Okun's Law
disposable income
consumption expenditures
4. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
real income
net export expenditures
fixed income
5. The percentage of unemployed workers in the civilian labor force
unemployment rate
real GDP
non-production transactions
inflation
6. Income earned that is available to resource suppliers and others before payment of personal taxes
personal income
deflation
expansion / recovery
consumption expenditures
7. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
rule of 70
gross investment expenditures
three kinds of Ig expenditures
GDP equation (expenditure approach)
8. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
structural / expectational inflation
gross investment expenditures
full employment
largest category of GDI
9. 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)
price index
nominal GDP
inflation
10. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
seasonal unemployment
inflation
how to determine GDP
natural employment
11. The number of dollars one receives as wages - rent - interest or profit
nominal GDP
COLA
gross investment expenditures
nominal income
12. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
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13. 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
rule of 70
frictional unemployment
CPI equation
national income
14. 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
frictional unemployment
Gross National Product (GNP)
COLA
GDP measures the market value of annual output and it is a __________ measure.
15. 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
nominal income
GDI equation
GDP (Gross Domestic Product)
16. Phase of the business cycle where output and employment begin to move toward full employment
real GDP
structural unemployment
participation rate
expansion / recovery
17. A sustained rise in the general price level of an economy
CPI equation
unemployment rate
price index
inflation
18. Output measured at base year prices - and thus adjusted
final goods
real GDP
labor force
inflation
19. All investment spending by government and business firms
how to determine GDP
intermediate goods
gross investment expenditures
final goods
20. Measures the amount of goods and services one's money can buy; measures purchasing power
gross investment expenditures
GDP measures the market value of annual output and it is a __________ measure.
real income
trough
21. 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.
expansion / recovery
GDP gap
how to determine GDP
recession
22. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
disposable income
GDP gap
non-production transactions
natural employment
23. Consumption - investment - government - and net exports
four kinds of spending
CPI equation
final goods
largest category of GDI
24. All people living in a society who are of legal age to work
final goods
seasonal unemployment
labor force
participation rate
25. Excess unemployment caused because the economy deviates from the long run output potential of the economy
cyclical / deficit demand unemployment
circular flow diagram
intermediate goods
income approach
26. Cost of living allowance
rule of 70
seasonal changes
COLA
real income
27. The civilian labor force expressed as a percentage of the labor force population
national income
participation rate
deflation
four kinds of spending
28. Inflation arising from the supply or cost side of the economy
cost push
government expenditures
price index
cyclical / deficit demand unemployment
29. A person who is available for and looking for work - but has none
unemployed
non-production transactions
nominal income
net export expenditures
30. GDP = C + Ig + G + Xn
real GDP
expansion / recovery
rule of 70
GDP equation (expenditure approach)
31. Maximum output of business cycle
structural unemployment
peak
consumption expenditures
gross investment expenditures
32. Total income earned by resource suppliers for their contributions to the production of the GNP
unemployed
national income
income approach
fixed income
33. The average of all prices is falling
seasonal unemployment
consumption expenditures
deflation
inflation
34. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
national income
labor force
fixed income
net export expenditures
35. Frictional + structural unemployment
recession
gross investment expenditures
GDP Price Index
natural employment
36. Temporary and associated with turnover in the labor market
participation rate
peak
frictional unemployment
cyclical / deficit demand unemployment
37. Cyclical unemployment is at 0
full employment
five sources of income
consumption expenditures
final goods
38. 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
GDP gap
price index
GDP equation (expenditure approach)
expansion / recovery
39. Phase of the business cycle where output and employment are at their lowest levels
demand pull
largest category of GDI
trough
nominal income
40. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
government expenditures
national income
income approach
trough
41. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
CPI equation
personal income
GDI equation
seasonal unemployment
42. Those who are on ______ incomes are hurt most by inflation
real income
national income accounting
non-production transactions
fixed income
43. A basic accounting measure of total production of goods and services of the national economy in one year
labor force
price index
GDP (Gross Domestic Product)
peak
44. Output measured at current prices - and thus unadjusted figure for GDP
natural employment
trough
personal income
nominal GDP
45. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
national income
labor force
structural / expectational inflation
how to determine GDP
46. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
intermediate goods
disposable income
seasonal unemployment
GDP (Gross Domestic Product)
47. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
seasonal changes
government expenditures
national income
GDP (Gross Domestic Product)
48. Results from laborers having a mismatched skill set with what is demanded by the current labor market
CPI equation
disposable income
structural unemployment
GDP gap
49. GDI = w + i + r + pi + misc
frictional unemployment
inflation
GDI equation
peak
50. Recurrent ups and downs of economic activity
trough
business cycle
participation rate
government expenditures