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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. 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






2. Frictional + structural unemployment






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






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






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






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






7. 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.






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






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






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






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






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






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






14. All investment spending by government and business firms






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






16. Inflation caused by excess demand in the economy






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






19. Temporary and associated with turnover in the labor market






20. Consumption - investment - government - and net exports






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






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






23. 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






24. Output sacrificed due to unemployment






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






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






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






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






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






30. 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)






31. GDP = C + Ig + G + Xn






32. The average of all prices is falling






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






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






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






36. Personal income less income taxes






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






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






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






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






41. Cyclical unemployment is at 0






42. Recurrent ups and downs of economic activity






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






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






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






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


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






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






49. Cost of living allowance






50. The sale of goods and services to households