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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. All investment spending by government and business firms






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






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






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






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






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






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






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






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






10. Temporary and associated with turnover in the labor market






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






12. The average of all prices is falling






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






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






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






16. 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.






17. Output sacrificed due to unemployment






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






19. Recurrent ups and downs of economic activity






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






21. Cost of living allowance






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






23. Frictional + structural unemployment






24. 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






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






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






27. Monetary






28. 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






29. Consumption - investment - government - and net exports






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






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






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






33. Periodic and predictable economic changes






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






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






36. Cyclical unemployment is at 0






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






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






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






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






41. 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






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






43. GDP = C + Ig + G + Xn






44. The sale of goods and services to households






45. Maximum output of business cycle






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






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






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






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

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