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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
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. Cost of living allowance
business cycle
how to determine GDP
demand pull
COLA
2. Excess unemployment caused because the economy deviates from the long run output potential of the economy
peak
real income
cyclical / deficit demand unemployment
seasonal unemployment
3. The sale of goods and services to households
Consumer Price Index (CPI)
cyclical / deficit demand unemployment
consumption expenditures
final goods
4. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
CPI equation
three kinds of Ig expenditures
unemployment rate
civilian labor force
5. All people living in a society who are of legal age to work
full employment
participation rate
labor force
GDP Price Index
6. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
seasonal unemployment
final goods
Consumer Price Index (CPI)
government expenditures
7. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
unemployment rate
structural / expectational inflation
participation rate
inflation
8. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
circular flow diagram
government expenditures
inflation
three kinds of Ig expenditures
9. Consumption - investment - government - and net exports
civilian labor force
GDP measures the market value of annual output and it is a __________ measure.
four kinds of spending
personal income
10. Total income earned by resource suppliers for their contributions to the production of the GNP
Gross National Product (GNP)
national income
disposable income
real income
11. GDI = w + i + r + pi + misc
gross investment expenditures
disposable income
labor force
GDI equation
12. Output measured at base year prices - and thus adjusted
demand pull
natural employment
real GDP
GDP equation (expenditure approach)
13. 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)
expansion / recovery
expenditure approach
GDP gap
frictional unemployment
14. Periodic and predictable economic changes
rule of 70
seasonal changes
deflation
labor force
15. Frictional + structural unemployment
natural employment
circular flow diagram
GDP Price Index
seasonal changes
16. The number of dollars one receives as wages - rent - interest or profit
nominal income
five sources of income
full employment
participation rate
17. 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
recession
GDP measures the market value of annual output and it is a __________ measure.
rule of 70
business cycle
18. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
demand pull
cyclical / deficit demand unemployment
structural unemployment
net export expenditures
19. 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
three kinds of Ig expenditures
deflation
Okun's Law
Gross National Product (GNP)
20. Personal income less income taxes
GDP equation (expenditure approach)
disposable income
COLA
structural unemployment
21. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
final goods
recession
five sources of income
civilian labor force
22. The average of all prices is falling
participation rate
COLA
fixed income
deflation
23. Recurrent ups and downs of economic activity
business cycle
non-production transactions
trough
national income accounting
24. Inflation caused by excess demand in the economy
deflation
Gross National Product (GNP)
GDP Price Index
demand pull
25. Inflation arising from the supply or cost side of the economy
GDI equation
cost push
participation rate
expansion / recovery
26. Income earned that is available to resource suppliers and others before payment of personal taxes
real income
personal income
trough
unemployment rate
27. Output measured at current prices - and thus unadjusted figure for GDP
cost push
income approach
nominal GDP
personal income
28. All investment spending by government and business firms
seasonal changes
cost push
gross investment expenditures
largest category of GDI
29. Phase of the business cycle where output and employment are at their lowest levels
intermediate goods
trough
fixed income
GDP (Gross Domestic Product)
30. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
structural / expectational inflation
three kinds of Ig expenditures
full employment
31. Phase of the business cycle where output and employment begin to move toward full employment
expansion / recovery
fixed income
gross investment expenditures
seasonal unemployment
32. Output sacrificed due to unemployment
GDP gap
natural employment
GDP equation (expenditure approach)
inflation
33. 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.
national income accounting
how to determine GDP
nominal income
expenditure approach
34. Those who are on ______ incomes are hurt most by inflation
personal income
three kinds of Ig expenditures
fixed income
five sources of income
35. Measures the amount of goods and services one's money can buy; measures purchasing power
COLA
GDP measures the market value of annual output and it is a __________ measure.
full employment
real income
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. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
participation rate
non-production transactions
national income
full employment
38. A sustained rise in the general price level of an economy
intermediate goods
rule of 70
inflation
nominal GDP
39. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
personal income
expansion / recovery
government expenditures
recession
40. Temporary and associated with turnover in the labor market
labor force
demand pull
business cycle
frictional unemployment
41. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
real GDP
GDP measures the market value of annual output and it is a __________ measure.
national income accounting
cost push
42. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
national income accounting
natural employment
inflation
civilian labor force
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
price index
net export expenditures
national income accounting
deflation
44. GDP = C + Ig + G + Xn
GDP equation (expenditure approach)
expenditure approach
GDP Price Index
personal income
45. A basic accounting measure of total production of goods and services of the national economy in one year
inflation
GDP (Gross Domestic Product)
five sources of income
participation rate
46. Monetary
GDP measures the market value of annual output and it is a __________ measure.
largest category of GDI
Okun's Law
frictional unemployment
47. Cyclical unemployment is at 0
circular flow diagram
full employment
three kinds of Ig expenditures
seasonal changes
48. Results from laborers having a mismatched skill set with what is demanded by the current labor market
three kinds of Ig expenditures
structural unemployment
final goods
CPI equation
49. The civilian labor force expressed as a percentage of the labor force population
Consumer Price Index (CPI)
cyclical / deficit demand unemployment
business cycle
participation rate
50. The percentage of unemployed workers in the civilian labor force
personal income
structural / expectational inflation
unemployment rate
Consumer Price Index (CPI)