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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. 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.






2. 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






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






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






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






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






7. All investment spending by government and business firms






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






9. Monetary






10. GDP = C + Ig + G + Xn






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






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






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






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






15. Inflation caused by excess demand in the economy






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






17. Consumption - investment - government - and net exports






18. 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)






19. Cost of living allowance






20. Periodic and predictable economic changes






21. Output sacrificed due to unemployment






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






23. The sale of goods and services to households






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






25. Frictional + structural unemployment






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






27. Personal income less income taxes






28. Recurrent ups and downs of economic activity






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






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






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






32. 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






33. 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






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






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






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






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






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. Maximum output of business cycle






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


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






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






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






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






45. 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






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. Output measured at base year prices - and thus adjusted






48. Cyclical unemployment is at 0






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






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