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






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






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






4. The sale of goods and services to households






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






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






7. All investment spending by government and business firms






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






9. Personal income less income taxes






10. 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






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






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






13. Recurrent ups and downs of economic activity






14. 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






15. 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






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






17. 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






18. Periodic and predictable economic changes






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






20. Frictional + structural unemployment






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






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






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






24. Consumption - investment - government - and net exports






25. Inflation caused by excess demand in the economy






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






27. The average of all prices is falling






28. Cyclical unemployment is at 0






29. Temporary and associated with turnover in the labor market






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






31. GDP = C + Ig + G + Xn






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






33. Output sacrificed due to unemployment






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






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


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






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






38. 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)






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






40. 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






41. 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.






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






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






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






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






46. Monetary






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






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






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






50. Cost of living allowance