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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. 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






2. Recurrent ups and downs of economic activity






3. Inflation caused by excess demand in the economy






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






5. Personal income less income taxes






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






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






8. Output sacrificed due to unemployment






9. Monetary






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






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






12. 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






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






14. GDP = C + Ig + G + Xn






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






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






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






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






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. The percentage of unemployed workers in the civilian labor force






21. Cyclical unemployment is at 0






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






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






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






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






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






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






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






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






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






33. Maximum output of business cycle






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






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






36. 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.






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






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






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






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






41. The average of all prices is falling






42. 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






43. Cost of living allowance






44. The sale of goods and services to households






45. Frictional + structural unemployment






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






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






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






49. Periodic and predictable economic changes






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