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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. 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






2. Cost of living allowance






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






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






5. Consumption - investment - government - and net exports






6. Output sacrificed due to unemployment






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






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






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






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






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






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






13. Monetary






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






15. All investment spending by government and business firms






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






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






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






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






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






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






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






23. Inflation caused by excess demand in the economy






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






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






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






27. Personal income less income taxes






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






29. 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






30. Maximum output of business cycle






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






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






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






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






35. 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






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






37. 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






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






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






40. Recurrent ups and downs of economic activity






41. 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.






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






43. The sale of goods and services to households






44. Cyclical unemployment is at 0






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


46. Frictional + structural unemployment






47. Temporary and associated with turnover in the labor market






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






49. Periodic and predictable economic changes






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