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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. 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






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






3. Inflation caused by excess demand in the economy






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






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






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






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






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






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






10. 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.






11. All investment spending by government and business firms






12. Maximum output of business cycle






13. Cyclical unemployment is at 0






14. Periodic and predictable economic changes






15. 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






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






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






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






19. Consumption - investment - government - and net exports






20. Personal income less income taxes






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






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






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






24. Output sacrificed due to unemployment






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






26. GDP = C + Ig + G + Xn






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






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






29. 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






30. Temporary and associated with turnover in the labor market






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






32. Frictional + structural unemployment






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






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






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


36. Monetary






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






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






39. The sale of goods and services to households






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






41. Cost of living allowance






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






43. 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






44. 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)






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






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






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






48. The average of all prices is falling






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






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