Test your basic knowledge |

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






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






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






4. The average of all prices is falling






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






6. All investment spending by government and business firms






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






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






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






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






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






12. Personal income less income taxes






13. Output sacrificed due to unemployment






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






15. 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






16. Inflation caused by excess demand in the economy






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






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






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






20. GDP = C + Ig + G + Xn






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






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






23. Cost of living allowance






24. Cyclical unemployment is at 0






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






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






27. Frictional + structural unemployment






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






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






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






31. Periodic and predictable economic changes






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






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






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






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






36. The sale of goods and services to households






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






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


39. Consumption - investment - government - and net exports






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






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






42. Monetary






43. 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






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






45. Recurrent ups and downs of economic activity






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






47. 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)






48. 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






49. Maximum output of business cycle






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