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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. Output sacrificed due to unemployment
seasonal changes
recession
Consumer Price Index (CPI)
GDP gap
2. Consumption - investment - government - and net exports
non-production transactions
four kinds of spending
frictional unemployment
real income
3. The sale of goods and services to households
consumption expenditures
intermediate goods
fixed income
non-production transactions
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
rule of 70
trough
nominal income
gross investment expenditures
5. Phase of the business cycle where output and employment begin to move toward full employment
expansion / recovery
real GDP
seasonal unemployment
how to determine GDP
6. A person who is available for and looking for work - but has none
non-production transactions
unemployed
four kinds of spending
price index
7. Income earned that is available to resource suppliers and others before payment of personal taxes
personal income
structural unemployment
peak
nominal income
8. Total income earned by resource suppliers for their contributions to the production of the GNP
rule of 70
national income
largest category of GDI
how to determine GDP
9. A sustained rise in the general price level of an economy
inflation
expenditure approach
structural unemployment
price index
10. Measures the amount of goods and services one's money can buy; measures purchasing power
consumption expenditures
real income
unemployed
seasonal changes
11. Excess unemployment caused because the economy deviates from the long run output potential of the economy
final goods
cyclical / deficit demand unemployment
GDP equation (expenditure approach)
fixed income
12. Personal income less income taxes
GDP (Gross Domestic Product)
trough
disposable income
Okun's Law
13. All investment spending by government and business firms
frictional unemployment
gross investment expenditures
business cycle
circular flow diagram
14. Output measured at current prices - and thus unadjusted figure for GDP
nominal GDP
consumption expenditures
natural employment
how to determine GDP
15. 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
disposable income
GDP Price Index
GDP measures the market value of annual output and it is a __________ measure.
CPI equation
16. Monetary
GDP equation (expenditure approach)
GDP measures the market value of annual output and it is a __________ measure.
unemployed
personal income
17. GDP = C + Ig + G + Xn
cost push
consumption expenditures
how to determine GDP
GDP equation (expenditure approach)
18. Inflation caused by excess demand in the economy
trough
GDP gap
national income accounting
demand pull
19. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
GDP Price Index
structural / expectational inflation
three kinds of Ig expenditures
intermediate goods
20. The percentage of unemployed workers in the civilian labor force
GDP Price Index
net export expenditures
unemployment rate
labor force
21. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
GDP gap
GDI equation
non-production transactions
22. 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
national income accounting
recession
peak
business cycle
23. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
participation rate
seasonal unemployment
nominal GDP
expansion / recovery
24. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
GDP measures the market value of annual output and it is a __________ measure.
natural employment
unemployment rate
final goods
25. The average of all prices is falling
how to determine GDP
Okun's Law
business cycle
deflation
26. All people living in a society who are of legal age to work
labor force
GDP (Gross Domestic Product)
income approach
national income
27. Recurrent ups and downs of economic activity
labor force
Okun's Law
intermediate goods
business cycle
28. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
structural unemployment
fixed income
largest category of GDI
final goods
29. The civilian labor force expressed as a percentage of the labor force population
five sources of income
participation rate
seasonal changes
seasonal unemployment
30. Output measured at base year prices - and thus adjusted
unemployment rate
full employment
demand pull
real GDP
31. Shows how money and goods and services flow between the various markets and players in the economy
cost push
natural employment
GDP equation (expenditure approach)
circular flow diagram
32. 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)
cost push
price index
expenditure approach
Gross National Product (GNP)
33. Results from laborers having a mismatched skill set with what is demanded by the current labor market
seasonal unemployment
Gross National Product (GNP)
structural unemployment
unemployed
34. Periodic and predictable economic changes
seasonal changes
consumption expenditures
inflation
how to determine GDP
35. Maximum output of business cycle
GDP (Gross Domestic Product)
intermediate goods
peak
gross investment expenditures
36. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
Consumer Price Index (CPI)
inflation
disposable income
net export expenditures
37. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
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38. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
three kinds of Ig expenditures
business cycle
GDI equation
structural / expectational inflation
39. The number of dollars one receives as wages - rent - interest or profit
GDP (Gross Domestic Product)
fixed income
nominal income
natural employment
40. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
GDP equation (expenditure approach)
COLA
CPI equation
five sources of income
41. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
GDP Price Index
structural unemployment
full employment
Consumer Price Index (CPI)
42. 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
four kinds of spending
price index
CPI equation
structural unemployment
43. Those who are on ______ incomes are hurt most by inflation
frictional unemployment
four kinds of spending
expansion / recovery
fixed income
44. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
GDP gap
three kinds of Ig expenditures
income approach
real income
45. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
cyclical / deficit demand unemployment
non-production transactions
intermediate goods
personal income
46. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
GDP equation (expenditure approach)
government expenditures
expenditure approach
non-production transactions
47. A basic accounting measure of total production of goods and services of the national economy in one year
GDP (Gross Domestic Product)
peak
national income
three kinds of Ig expenditures
48. Cyclical unemployment is at 0
structural / expectational inflation
full employment
rule of 70
participation rate
49. Cost of living allowance
fixed income
COLA
GDP gap
gross investment expenditures
50. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
three kinds of Ig expenditures
national income accounting
disposable income
Okun's Law