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






2. All investment spending by government and business firms






3. The sale of goods and services to households






4. 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






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






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






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






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






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






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






11. 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.






12. Inflation caused by excess demand in the economy






13. Recurrent ups and downs of economic activity






14. 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






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






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






17. Temporary and associated with turnover in the labor market






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






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






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






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






22. Periodic and predictable economic changes






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






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






25. Cyclical unemployment is at 0






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


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






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






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






30. 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)






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






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






33. The average of all prices is falling






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






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






36. 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






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






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






39. Monetary






40. Personal income less income taxes






41. GDP = C + Ig + G + Xn






42. Consumption - investment - government - and net exports






43. Frictional + structural unemployment






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






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






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






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






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






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






50. Output sacrificed due to unemployment