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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Cost of living allowance

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

3. Temporary and associated with turnover in the 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. The civilian labor force expressed as a percentage of the labor force population

6. 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.

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

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

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

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

11. 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)

12. Cyclical unemployment is at 0

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

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

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

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

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

18. GDP = C + Ig + G + Xn

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

20. Maximum output of business cycle

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

22. Personal income less income taxes

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

24. Monetary

25. Recurrent ups and downs of economic activity

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

27. Consumption - investment - government - and net exports

28. 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

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

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

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

32. 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

33. All investment spending by government and business firms

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

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

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

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

38. 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

39. 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

40. Output sacrificed due to unemployment

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

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

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

44. The average of all prices is falling

45. Periodic and predictable economic changes

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

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

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

49. The sale of goods and services to households

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