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






2. Periodic and predictable economic changes






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






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






5. Consumption - investment - government - and net exports






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






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






8. Cost of living allowance






9. Inflation caused by excess demand in the economy






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






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






12. All investment spending by government and business firms






13. GDP = C + Ig + G + Xn






14. Maximum output of business cycle






15. The sale of goods and services to households






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






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






18. Temporary and associated with turnover in the labor market






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






20. 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)






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






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






23. Monetary






24. The average of all prices is falling






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






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






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






28. 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






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






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






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






32. Recurrent ups and downs of economic activity






33. 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






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






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






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






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






38. 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






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






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






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






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






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






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






45. 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






46. 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






47. Personal income less income taxes






48. Frictional + structural unemployment






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






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