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