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






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






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






4. Maximum output of business cycle






5. Inflation caused by excess demand in the economy






6. Frictional + structural unemployment






7. 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






8. Temporary and associated with turnover in the labor market






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






10. 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)






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






12. 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






13. Monetary






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






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






16. The sale of goods and services to households






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






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






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


20. 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






21. Periodic and predictable economic changes






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






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






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






25. 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






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






27. Cyclical unemployment is at 0






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






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






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






31. GDP = C + Ig + G + Xn






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






33. All investment spending by government and business firms






34. 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






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






36. The average of all prices is falling






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






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






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






40. Cost of living allowance






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






42. Recurrent ups and downs of economic activity






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






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






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






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






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






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






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






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