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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. Maximum output of business cycle






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






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






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






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






6. Personal income less income taxes






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






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






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






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






11. 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






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






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






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






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






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


17. 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






18. Temporary and associated with turnover in the labor market






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






20. Cost of living allowance






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






22. All investment spending by government and business firms






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






24. 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






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






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






27. Output sacrificed due to unemployment






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






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






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






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






32. GDP = C + Ig + G + Xn






33. 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






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






35. Frictional + structural unemployment






36. Recurrent ups and downs of economic activity






37. Inflation caused by excess demand in the economy






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






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






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






41. Consumption - investment - government - and net exports






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






43. Monetary






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






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. Cyclical unemployment is at 0






47. 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)






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






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






50. The average of all prices is falling