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






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






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






4. 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






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






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






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. Personal income less income taxes






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. Cyclical unemployment is at 0






11. Maximum output of business cycle






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






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






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






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






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






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






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






19. 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)






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






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






22. Monetary






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


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






25. Cost of living allowance






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. Output sacrificed due to unemployment






28. All investment spending by government and business firms






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






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






31. Consumption - investment - government - and net exports






32. Periodic and predictable economic changes






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






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






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






36. The sale of goods and services to households






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






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






39. Frictional + structural unemployment






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






41. The average of all prices is falling






42. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance






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






44. Recurrent ups and downs of economic activity






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






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






47. Temporary and associated with turnover in the labor market






48. GDP = C + Ig + G + Xn






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






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