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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
fixed income
seasonal unemployment
nominal income
structural / expectational inflation
2. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
demand pull
real income
natural employment
three kinds of Ig expenditures
3. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
4. Shows how money and goods and services flow between the various markets and players in the economy
trough
final goods
circular flow diagram
seasonal unemployment
5. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
CPI equation
three kinds of Ig expenditures
peak
consumption expenditures
6. Output sacrificed due to unemployment
participation rate
GDP measures the market value of annual output and it is a __________ measure.
GDP gap
GDP equation (expenditure approach)
7. The percentage of unemployed workers in the civilian labor force
civilian labor force
peak
unemployment rate
labor force
8. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
trough
rule of 70
intermediate goods
deflation
9. Output measured at base year prices - and thus adjusted
real GDP
GDP gap
unemployment rate
price index
10. Periodic and predictable economic changes
seasonal changes
national income accounting
five sources of income
circular flow diagram
11. Total income earned by resource suppliers for their contributions to the production of the GNP
government expenditures
GDP gap
national income
structural / expectational inflation
12. Recurrent ups and downs of economic activity
nominal income
GDP measures the market value of annual output and it is a __________ measure.
business cycle
GDP Price Index
13. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
net export expenditures
structural / expectational inflation
cyclical / deficit demand unemployment
intermediate goods
14. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
personal income
government expenditures
civilian labor force
Gross National Product (GNP)
15. 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
real income
Gross National Product (GNP)
seasonal changes
participation rate
16. Income earned that is available to resource suppliers and others before payment of personal taxes
largest category of GDI
national income accounting
personal income
inflation
17. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
structural / expectational inflation
cost push
government expenditures
national income accounting
18. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
COLA
intermediate goods
unemployment rate
five sources of income
19. GDI = w + i + r + pi + misc
GDI equation
largest category of GDI
structural / expectational inflation
personal income
20. Cost of living allowance
COLA
full employment
fixed income
rule of 70
21. 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)
expenditure approach
unemployment rate
frictional unemployment
Gross National Product (GNP)
22. Inflation arising from the supply or cost side of the economy
real income
Consumer Price Index (CPI)
Okun's Law
cost push
23. Cyclical unemployment is at 0
price index
Gross National Product (GNP)
full employment
participation rate
24. The sale of goods and services to households
consumption expenditures
seasonal changes
largest category of GDI
recession
25. 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.
how to determine GDP
inflation
frictional unemployment
disposable income
26. Excess unemployment caused because the economy deviates from the long run output potential of the economy
demand pull
cyclical / deficit demand unemployment
gross investment expenditures
expansion / recovery
27. The civilian labor force expressed as a percentage of the labor force population
frictional unemployment
peak
national income accounting
participation rate
28. Maximum output of business cycle
peak
trough
expenditure approach
final goods
29. Inflation caused by excess demand in the economy
seasonal changes
cyclical / deficit demand unemployment
frictional unemployment
demand pull
30. A person who is available for and looking for work - but has none
unemployed
non-production transactions
unemployment rate
how to determine GDP
31. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
trough
fixed income
final goods
Consumer Price Index (CPI)
32. Phase of the business cycle where output and employment are at their lowest levels
trough
five sources of income
frictional unemployment
Consumer Price Index (CPI)
33. The number of dollars one receives as wages - rent - interest or profit
GDP Price Index
deflation
cyclical / deficit demand unemployment
nominal income
34. A basic accounting measure of total production of goods and services of the national economy in one year
full employment
structural unemployment
business cycle
GDP (Gross Domestic Product)
35. Personal income less income taxes
deflation
seasonal changes
real GDP
disposable income
36. 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
GDP equation (expenditure approach)
non-production transactions
recession
five sources of income
37. Results from laborers having a mismatched skill set with what is demanded by the current labor market
seasonal changes
income approach
structural unemployment
inflation
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
fixed income
GDP gap
unemployment rate
price index
39. Monetary
real GDP
unemployed
fixed income
GDP measures the market value of annual output and it is a __________ measure.
40. Measures the amount of goods and services one's money can buy; measures purchasing power
disposable income
real income
nominal income
structural / expectational inflation
41. Temporary and associated with turnover in the labor market
frictional unemployment
income approach
demand pull
intermediate goods
42. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
largest category of GDI
recession
net export expenditures
trough
43. Consumption - investment - government - and net exports
four kinds of spending
seasonal changes
intermediate goods
COLA
44. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
GDI equation
consumption expenditures
government expenditures
how to determine GDP
45. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
price index
Consumer Price Index (CPI)
national income accounting
government expenditures
46. Phase of the business cycle where output and employment begin to move toward full employment
Consumer Price Index (CPI)
how to determine GDP
expansion / recovery
five sources of income
47. Those who are on ______ incomes are hurt most by inflation
fixed income
GDP Price Index
seasonal changes
cost push
48. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
frictional unemployment
inflation
non-production transactions
Consumer Price Index (CPI)
49. The average of all prices is falling
deflation
structural / expectational inflation
recession
four kinds of spending
50. All investment spending by government and business firms
civilian labor force
gross investment expenditures
unemployment rate
cyclical / deficit demand unemployment