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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. All investment spending by government and business firms






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






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






4. Recurrent ups and downs of economic activity






5. 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)






6. Frictional + structural unemployment






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






8. Periodic and predictable economic changes






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






10. GDP = C + Ig + G + Xn






11. Maximum output of business cycle






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






13. Consumption - investment - government - and net exports






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






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






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






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






18. Personal income less income taxes






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






20. Cost of living allowance






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






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






23. 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






24. 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






25. Cyclical unemployment is at 0






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






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






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






29. Temporary and associated with turnover in the labor market






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






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






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






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






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






35. Output sacrificed due to unemployment






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






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






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


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






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






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






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






43. Monetary






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






45. 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






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






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






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






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






50. 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