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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. Temporary and associated with turnover in the labor market






2. Recurrent ups and downs of economic activity






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






4. 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






5. 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






6. Output sacrificed due to unemployment






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






8. Personal income less income taxes






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






10. Frictional + structural unemployment






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






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






13. All investment spending by government and business firms






14. Maximum output of business cycle






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






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






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






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






19. 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






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






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






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






23. Inflation caused by excess demand in the economy






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






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






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






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






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






29. Cyclical unemployment is at 0






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






31. 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)






32. GDP = C + Ig + G + Xn






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






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






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






36. The average of all prices is falling






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






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






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






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






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






42. 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.






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






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


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






46. Periodic and predictable economic changes






47. 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






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






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






50. Consumption - investment - government - and net exports