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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. GDP = C + Ig + G + Xn






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






3. Inflation caused by excess demand in the economy






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






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






6. The average of all prices is falling






7. Periodic and predictable economic changes






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






9. Frictional + structural unemployment






10. Cost of living allowance






11. Monetary






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






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






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






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






16. 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)






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






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






19. Personal income less income taxes






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


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






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






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






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






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






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






27. 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






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






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






31. 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






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. Output sacrificed due to unemployment






34. Temporary and associated with turnover in the labor market






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






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






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






38. 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






39. 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.






40. Cyclical unemployment is at 0






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






42. The sale of goods and services to households






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






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






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






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






47. Maximum output of business cycle






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






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






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