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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. All investment spending by government and business firms






2. Temporary and associated with turnover in the labor market






3. Personal income less income taxes






4. Cyclical unemployment is at 0






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






6. Periodic and predictable economic changes






7. Consumption - investment - government - and net exports






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






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






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






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






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






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






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






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






16. 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






17. Output sacrificed due to unemployment






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






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






20. The average of all prices is falling






21. Inflation caused by excess demand in the economy






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






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






24. Monetary






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






26. 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






27. 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)






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






29. Maximum output of business cycle






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






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






32. 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






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






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






35. The sale of goods and services to households






36. Cost of living allowance






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






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






39. 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






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






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






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






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






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






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






46. GDP = C + Ig + G + Xn






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






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






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






50. Frictional + structural unemployment