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






2. Consumption - investment - government - and net exports






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






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






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






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






7. The sale of goods and services to households






8. Output sacrificed due to unemployment






9. GDP = C + Ig + G + Xn






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






11. 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






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






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






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






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






16. Cyclical unemployment is at 0






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






18. Frictional + structural unemployment






19. Inflation caused by excess demand in the economy






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






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






22. 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)






23. Cost of living allowance






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






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






26. 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.






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






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






29. Recurrent ups and downs of economic activity






30. Personal income less income taxes






31. Monetary






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






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






34. 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






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






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






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






38. 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






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






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






41. All investment spending by government and business firms






42. Maximum output of business cycle






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






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






45. The average of all prices is falling






46. 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






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






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






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






50. Periodic and predictable economic changes