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






2. 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)






3. Inflation caused by excess demand in the economy






4. 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.






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






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






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






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






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






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






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






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






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






14. 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






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






16. Frictional + structural unemployment






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






18. Temporary and associated with turnover in the labor market






19. Output sacrificed due to unemployment






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






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






22. The sale of goods and services to households






23. GDP = C + Ig + G + Xn






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






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






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






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






28. Periodic and predictable economic changes






29. Recurrent ups and downs of economic activity






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






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






32. Personal income less income taxes






33. Consumption - investment - government - and net exports






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


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






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






37. All investment spending by government and business firms






38. The average of all prices is falling






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






40. Monetary






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






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






43. 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






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






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






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






47. Maximum output of business cycle






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






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






50. Cyclical unemployment is at 0