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






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






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






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






5. 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






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






7. Consumption - investment - government - and net exports






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






9. All investment spending by government and business firms






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






11. 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)






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






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






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






15. Monetary






16. Maximum output of business cycle






17. Cyclical unemployment is at 0






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






19. Personal income less income taxes






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






21. 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.






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






23. The average of all prices is falling






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






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






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






27. 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






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






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


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






31. Frictional + structural unemployment






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






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






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






35. GDP = C + Ig + G + Xn






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






37. Inflation caused by excess demand in the economy






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






39. Recurrent ups and downs of economic activity






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






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






42. 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






43. Periodic and predictable economic changes






44. 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






45. 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






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






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






48. Cost of living allowance






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






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