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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. Output sacrificed due to unemployment






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






3. 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)






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






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






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






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






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






9. Recurrent ups and downs of economic activity






10. The sale of goods and services to households






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






12. 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






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






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






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


16. 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






17. The average of all prices is falling






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






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






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






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






22. Maximum output of business cycle






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






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






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






26. GDP = C + Ig + G + Xn






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






28. Consumption - investment - government - and net exports






29. All investment spending by government and business firms






30. 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






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






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






33. Monetary






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






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






36. 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






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






38. Temporary and associated with turnover in the labor market






39. Cost of living allowance






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






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






42. Inflation caused by excess demand in the economy






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






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






45. Periodic and predictable economic changes






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






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






48. 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






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






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