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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. Cyclical unemployment is at 0






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






3. The average of all prices is falling






4. 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)






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






6. Maximum output of business cycle






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






8. Personal income less income taxes






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






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. Cost of living allowance






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


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






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






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






16. The sale of goods and services to households






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






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






19. Inflation caused by excess demand in the economy






20. 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.






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






22. Recurrent ups and downs of economic activity






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






24. 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






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






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






27. Temporary and associated with turnover in the labor market






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






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






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






31. 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






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






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






34. GDP = C + Ig + G + Xn






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






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






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






38. 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






39. All investment spending by government and business firms






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






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






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






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






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






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






46. 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






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






48. Periodic and predictable economic changes






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






50. Frictional + structural unemployment