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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
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Study First
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. GDI = w + i + r + pi + misc
government expenditures
national income
personal income
GDI equation
2. GDP = C + Ig + G + Xn
expenditure approach
GDP equation (expenditure approach)
net export expenditures
GDP gap
3. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
largest category of GDI
real income
trough
GDP equation (expenditure approach)
4. Results from laborers having a mismatched skill set with what is demanded by the current labor market
GDP gap
trough
circular flow diagram
structural unemployment
5. A basic accounting measure of total production of goods and services of the national economy in one year
seasonal unemployment
GDP equation (expenditure approach)
COLA
GDP (Gross Domestic Product)
6. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
natural employment
civilian labor force
GDP equation (expenditure approach)
inflation
7. Total income earned by resource suppliers for their contributions to the production of the GNP
national income
disposable income
recession
business cycle
8. The number of dollars one receives as wages - rent - interest or profit
nominal GDP
nominal income
full employment
personal income
9. A sustained rise in the general price level of an economy
final goods
unemployed
inflation
business cycle
10. Shows how money and goods and services flow between the various markets and players in the economy
structural / expectational inflation
circular flow diagram
cyclical / deficit demand unemployment
structural unemployment
11. 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
Gross National Product (GNP)
seasonal changes
intermediate goods
unemployed
12. Income earned that is available to resource suppliers and others before payment of personal taxes
GDP gap
real income
personal income
government expenditures
13. Excess unemployment caused because the economy deviates from the long run output potential of the economy
cyclical / deficit demand unemployment
GDP equation (expenditure approach)
seasonal unemployment
personal income
14. The average of all prices is falling
GDI equation
expansion / recovery
labor force
deflation
15. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
five sources of income
Gross National Product (GNP)
expansion / recovery
how to determine GDP
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.
government expenditures
how to determine GDP
real GDP
GDP equation (expenditure approach)
17. Output measured at base year prices - and thus adjusted
fixed income
final goods
gross investment expenditures
real GDP
18. Output sacrificed due to unemployment
final goods
consumption expenditures
GDP gap
inflation
19. Monetary
GDP measures the market value of annual output and it is a __________ measure.
gross investment expenditures
expenditure approach
largest category of GDI
20. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
expansion / recovery
net export expenditures
three kinds of Ig expenditures
structural unemployment
21. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
Consumer Price Index (CPI)
GDP (Gross Domestic Product)
trough
natural employment
22. Those who are on ______ incomes are hurt most by inflation
intermediate goods
price index
fixed income
four kinds of spending
23. 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)
personal income
three kinds of Ig expenditures
structural / expectational inflation
expenditure approach
24. All investment spending by government and business firms
national income accounting
expenditure approach
gross investment expenditures
participation rate
25. Consumption - investment - government - and net exports
full employment
four kinds of spending
cyclical / deficit demand unemployment
seasonal changes
26. 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
real GDP
recession
labor force
structural unemployment
27. Inflation arising from the supply or cost side of the economy
business cycle
Okun's Law
cost push
four kinds of spending
28. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
CPI equation
labor force
how to determine GDP
intermediate goods
29. Cyclical unemployment is at 0
full employment
unemployed
Okun's Law
final goods
30. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
Consumer Price Index (CPI)
labor force
government expenditures
CPI equation
31. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
structural unemployment
CPI equation
non-production transactions
natural employment
32. Temporary and associated with turnover in the labor market
income approach
seasonal unemployment
frictional unemployment
national income
33. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
participation rate
inflation
non-production transactions
cyclical / deficit demand unemployment
34. Periodic and predictable economic changes
expansion / recovery
seasonal changes
civilian labor force
COLA
35. The civilian labor force expressed as a percentage of the labor force population
participation rate
unemployment rate
deflation
cyclical / deficit demand unemployment
36. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
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37. Frictional + structural unemployment
structural unemployment
rule of 70
cyclical / deficit demand unemployment
natural employment
38. The percentage of unemployed workers in the civilian labor force
peak
unemployment rate
deflation
structural unemployment
39. Measures the amount of goods and services one's money can buy; measures purchasing power
civilian labor force
real GDP
real income
GDP measures the market value of annual output and it is a __________ measure.
40. 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
three kinds of Ig expenditures
GDP Price Index
unemployed
intermediate goods
41. A person who is available for and looking for work - but has none
unemployed
Consumer Price Index (CPI)
recession
full employment
42. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
circular flow diagram
national income accounting
Consumer Price Index (CPI)
net export expenditures
43. All people living in a society who are of legal age to work
labor force
expenditure approach
COLA
GDI equation
44. Cost of living allowance
national income accounting
COLA
trough
Gross National Product (GNP)
45. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
largest category of GDI
national income accounting
business cycle
labor force
46. Personal income less income taxes
net export expenditures
intermediate goods
final goods
disposable income
47. 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
structural unemployment
Consumer Price Index (CPI)
price index
gross investment expenditures
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
full employment
rule of 70
how to determine GDP
demand pull
49. Phase of the business cycle where output and employment begin to move toward full employment
expansion / recovery
personal income
three kinds of Ig expenditures
how to determine GDP
50. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
final goods
trough
unemployment rate
seasonal unemployment