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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. All investment spending by government and business firms
gross investment expenditures
civilian labor force
Okun's Law
trough
2. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
how to determine GDP
largest category of GDI
price index
peak
3. A basic accounting measure of total production of goods and services of the national economy in one year
unemployed
intermediate goods
GDP (Gross Domestic Product)
GDP Price Index
4. Measures the amount of goods and services one's money can buy; measures purchasing power
deflation
nominal GDP
seasonal unemployment
real income
5. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
trough
inflation
CPI equation
6. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
trough
national income
Consumer Price Index (CPI)
recession
7. The number of dollars one receives as wages - rent - interest or profit
personal income
participation rate
unemployed
nominal income
8. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
intermediate goods
GDP equation (expenditure approach)
personal income
nominal GDP
9. A sustained rise in the general price level of an economy
CPI equation
government expenditures
gross investment expenditures
inflation
10. Temporary and associated with turnover in the labor market
seasonal changes
four kinds of spending
frictional unemployment
cyclical / deficit demand unemployment
11. Results from laborers having a mismatched skill set with what is demanded by the current labor market
CPI equation
structural unemployment
income approach
real GDP
12. The average of all prices is falling
deflation
civilian labor force
expenditure approach
Okun's Law
13. Phase of the business cycle where output and employment are at their lowest levels
business cycle
consumption expenditures
trough
real GDP
14. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
unemployed
Consumer Price Index (CPI)
government expenditures
GDI equation
15. Inflation arising from the supply or cost side of the economy
GDI equation
government expenditures
cost push
unemployed
16. 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.
Consumer Price Index (CPI)
circular flow diagram
full employment
how to determine GDP
17. Output sacrificed due to unemployment
GDP gap
real income
inflation
civilian labor force
18. GDI = w + i + r + pi + misc
structural unemployment
GDI equation
non-production transactions
intermediate goods
19. Recurrent ups and downs of economic activity
business cycle
government expenditures
expenditure approach
nominal GDP
20. Output measured at base year prices - and thus adjusted
real income
five sources of income
frictional unemployment
real GDP
21. Cost of living allowance
labor force
deflation
unemployment rate
COLA
22. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
recession
demand pull
net export expenditures
seasonal unemployment
23. Frictional + structural unemployment
recession
GDP Price Index
four kinds of spending
natural employment
24. 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
three kinds of Ig expenditures
final goods
GDP Price Index
four kinds of spending
25. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
labor force
final goods
non-production transactions
national income accounting
26. Those who are on ______ incomes are hurt most by inflation
structural / expectational inflation
income approach
fixed income
disposable income
27. Monetary
GDP measures the market value of annual output and it is a __________ measure.
gross investment expenditures
deflation
seasonal unemployment
28. 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
non-production transactions
disposable income
Okun's Law
recession
29. Consumption - investment - government - and net exports
nominal income
four kinds of spending
final goods
natural employment
30. Excess unemployment caused because the economy deviates from the long run output potential of the economy
consumption expenditures
cyclical / deficit demand unemployment
Gross National Product (GNP)
demand pull
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
Gross National Product (GNP)
rule of 70
peak
real income
32. Output measured at current prices - and thus unadjusted figure for GDP
business cycle
GDP measures the market value of annual output and it is a __________ measure.
civilian labor force
nominal GDP
33. Periodic and predictable economic changes
disposable income
seasonal changes
national income accounting
how to determine GDP
34. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
GDP measures the market value of annual output and it is a __________ measure.
real GDP
CPI equation
business cycle
35. The civilian labor force expressed as a percentage of the labor force population
fixed income
unemployed
CPI equation
participation rate
36. Cyclical unemployment is at 0
full employment
largest category of GDI
income approach
participation rate
37. Income earned that is available to resource suppliers and others before payment of personal taxes
demand pull
circular flow diagram
price index
personal income
38. A person who is available for and looking for work - but has none
intermediate goods
GDI equation
unemployed
inflation
39. The percentage of unemployed workers in the civilian labor force
price index
unemployment rate
consumption expenditures
GDP gap
40. Total income earned by resource suppliers for their contributions to the production of the GNP
income approach
GDP Price Index
intermediate goods
national income
41. 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
non-production transactions
consumption expenditures
three kinds of Ig expenditures
price index
42. All people living in a society who are of legal age to work
GDI equation
largest category of GDI
intermediate goods
labor force
43. GDP = C + Ig + G + Xn
labor force
GDP equation (expenditure approach)
rule of 70
intermediate goods
44. The sale of goods and services to households
largest category of GDI
expansion / recovery
consumption expenditures
seasonal unemployment
45. Maximum output of business cycle
cost push
final goods
fixed income
peak
46. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
Consumer Price Index (CPI)
civilian labor force
structural unemployment
price index
47. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
participation rate
structural unemployment
final goods
how to determine GDP
48. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
GDP equation (expenditure approach)
income approach
government expenditures
recession
49. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
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50. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
deflation
three kinds of Ig expenditures
business cycle
gross investment expenditures