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


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






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






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






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






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






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






8. GDP = C + Ig + G + Xn






9. 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






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






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






12. 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.






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






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






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






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






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






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






19. Inflation caused by excess demand in the economy






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






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






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






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






24. Periodic and predictable economic changes






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






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






27. 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






28. The sale of goods and services to households






29. The average of all prices is falling






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






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. All investment spending by government and business firms






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






34. Temporary and associated with turnover in the labor market






35. Cyclical unemployment is at 0






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






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






38. 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






39. Personal income less income taxes






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






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






42. Output sacrificed due to unemployment






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






44. Monetary






45. Recurrent ups and downs of economic activity






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






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






48. Frictional + structural unemployment






49. Cost of living allowance






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