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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 average of all prices is falling






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






3. 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






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






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






6. Periodic and predictable economic changes






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






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






9. Frictional + structural unemployment






10. The sale of goods and services to households






11. 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






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






13. Cost of living allowance






14. Monetary






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






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






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






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






19. GDP = C + Ig + G + Xn






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






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






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






23. Personal income less income taxes






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






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






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






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






28. 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






29. All investment spending by government and business firms






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






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






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






33. Recurrent ups and downs of economic activity






34. Temporary and associated with turnover in the labor market






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






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






37. 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






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






39. Output sacrificed due to unemployment






40. Consumption - investment - government - and net exports






41. Cyclical unemployment is at 0






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






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






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






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






46. 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)






47. 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






48. 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.






49. Inflation caused by excess demand in the economy






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