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






2. Inflation caused by excess demand in the economy






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






4. 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






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






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






8. Consumption - investment - government - and net exports






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






10. Output sacrificed due to unemployment






11. Cyclical unemployment is at 0






12. Recurrent ups and downs of economic activity






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






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






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






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






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






18. GDP = C + Ig + G + Xn






19. 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






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






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






22. 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)






23. 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






24. Personal income less income taxes






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






26. Cost of living allowance






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






28. Periodic and predictable economic changes






29. 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






30. Maximum output of business cycle






31. 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






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






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






34. The sale of goods and services to households






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






36. The average of all prices is falling






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


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






39. Frictional + structural unemployment






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






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






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






43. All investment spending by government and business firms






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






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






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






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






48. Monetary






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






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