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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. Personal income less income taxes






2. 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)






3. GDP = C + Ig + G + Xn






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






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






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






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






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






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






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






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






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






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






14. 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






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






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






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






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






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






20. 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






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






22. Recurrent ups and downs of economic activity






23. The average of all prices is falling






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






25. Cyclical unemployment is at 0






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






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






28. Output sacrificed due to unemployment






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






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






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






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






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






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






35. Frictional + structural unemployment






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






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






38. Cost of living allowance






39. Temporary and associated with turnover in the labor market






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






41. Monetary






42. 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






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


44. Inflation caused by excess demand in the economy






45. Consumption - investment - government - and net exports






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






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






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






49. 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






50. 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.