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