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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. Monetary






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






3. Cyclical unemployment is at 0






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






5. The sale of goods and services to households






6. Temporary and associated with turnover in the labor market






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






8. Frictional + structural unemployment






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






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






11. 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






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






13. 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






14. Periodic and predictable economic changes






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






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






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






18. Maximum output of business cycle






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






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






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






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






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






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






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






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






27. All investment spending by government and business firms






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


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






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






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






32. Cost of living allowance






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






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






35. Consumption - investment - government - and net exports






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






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






38. 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)






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






40. Inflation caused by excess demand in the economy






41. 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






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






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






44. Output sacrificed due to unemployment






45. Recurrent ups and downs of economic activity






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






47. The average of all prices is falling






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. GDP = C + Ig + G + Xn






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