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






2. Maximum output of business cycle






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






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






5. 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






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






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






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






10. 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






11. Inflation caused by excess demand in the economy






12. Periodic and predictable economic changes






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






14. The average of all prices is falling






15. Consumption - investment - government - and net exports






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






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






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






19. Cyclical unemployment is at 0






20. 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






21. Recurrent ups and downs of economic activity






22. 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.






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






24. 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)






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






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






27. Monetary






28. GDP = C + Ig + G + Xn






29. Temporary and associated with turnover in the labor market






30. Personal income less income taxes






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






32. 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






33. Frictional + structural unemployment






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






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






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


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






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






39. All investment spending by government and business firms






40. Cost of living allowance






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






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






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






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






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






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






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






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






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






50. The sale of goods and services to households