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






2. 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)






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






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






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






6. Temporary and associated with turnover in the labor market






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






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






9. GDP = C + Ig + G + Xn






10. Cyclical unemployment is at 0






11. 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






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






13. Recurrent ups and downs of economic activity






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






15. The sale of goods and services to households






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






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


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






19. All investment spending by government and business firms






20. Consumption - investment - government - and net exports






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






22. Maximum output of business cycle






23. 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






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






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






26. Inflation caused by excess demand in the economy






27. The average of all prices is falling






28. Periodic and predictable economic changes






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






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






31. Personal income less income taxes






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






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






34. Monetary






35. Output sacrificed due to unemployment






36. 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






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






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






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






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






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






42. 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






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






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






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






46. 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.






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






48. Frictional + structural unemployment






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






50. 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