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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. All investment spending by government and business firms






2. Output sacrificed due to unemployment






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






4. 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






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






6. 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






7. 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






8. Temporary and associated with turnover in the labor market






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






10. 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






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






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






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






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






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






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






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






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






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






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






21. GDP = C + Ig + G + Xn






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






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






24. Cyclical unemployment is at 0






25. The average of all prices is falling






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






27. 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)






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






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






30. The sale of goods and services to households






31. Cost of living allowance






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






33. Monetary






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






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






36. Consumption - investment - government - and net exports






37. 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






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






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






40. Frictional + structural unemployment






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






42. Personal income less income taxes






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






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






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






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






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






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






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






50. Inflation caused by excess demand in the economy