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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. Maximum output of business cycle






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






3. Monetary






4. The sale of goods and services to households






5. GDP = C + Ig + G + Xn






6. 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)






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






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






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






11. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






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






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






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






21. The average of all prices is falling






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


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






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






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






26. Consumption - investment - government - and net exports






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






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






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






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






31. Personal income less income taxes






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






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






34. Periodic and predictable economic changes






35. Output sacrificed due to unemployment






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






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






38. Recurrent ups and downs of economic activity






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






40. Inflation caused by excess demand in the economy






41. Frictional + structural unemployment






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






43. 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.






44. All investment spending by government and business firms






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






46. 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






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






48. 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






49. Cyclical unemployment is at 0






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