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






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






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






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






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






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






7. Recurrent ups and downs of economic activity






8. Cyclical unemployment is at 0






9. 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






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






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






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






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






14. Consumption - investment - government - and net exports






15. Personal income less income taxes






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






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






18. The sale of goods and services to households






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






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






21. Output sacrificed due to unemployment






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






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






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


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






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






27. Temporary and associated with turnover in the labor market






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






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






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






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






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






33. Frictional + structural unemployment






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






35. GDP = C + Ig + G + Xn






36. Periodic and predictable economic changes






37. Inflation caused by excess demand in the economy






38. Monetary






39. 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






40. Maximum output of business cycle






41. Cost of living allowance






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






43. All investment spending by government and business firms






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






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






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






47. 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






48. 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.






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






50. 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