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






2. Periodic and predictable economic changes






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






4. All investment spending by government and business firms






5. GDP = C + Ig + G + Xn






6. 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






7. 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






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






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






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






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






12. Cost of living allowance






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






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






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






16. 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)






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






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






19. Recurrent ups and downs of economic activity






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






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






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. Cyclical unemployment is at 0






24. 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






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






26. Consumption - investment - government - and net exports






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






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






29. 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






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






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






32. Temporary and associated with turnover in the labor market






33. Output sacrificed due to unemployment






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


35. 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






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






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






38. Maximum output of business cycle






39. Frictional + structural unemployment






40. Inflation caused by excess demand in the economy






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






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






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






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






45. Personal income less income taxes






46. The average of all prices is falling






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






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






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






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