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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. Recurrent ups and downs of economic activity






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






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






4. Monetary






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






6. Cyclical unemployment is at 0






7. 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






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






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






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






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






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






13. 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






14. Cost of living allowance






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






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






17. 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)






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






19. Temporary and associated with turnover in the labor market






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






21. The average of all prices is falling






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






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






24. All investment spending by government and business firms






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






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






27. The sale of goods and services to households






28. Frictional + structural unemployment






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






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






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






32. Inflation caused by excess demand in the economy






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

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






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






36. Maximum output of business cycle






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






38. Consumption - investment - government - and net exports






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






40. Personal income less income taxes






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






42. GDP = C + Ig + G + Xn






43. 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






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






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






46. Periodic and predictable economic changes






47. 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.






48. Output sacrificed due to unemployment






49. 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






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