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CLEP Macroeconomics: Measurement Of Economic Performance

Subjects : clep, economics
Instructions:
  • Answer 50 questions in 30 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 sale of goods and services to households






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






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






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






5. 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






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






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






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






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






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






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. Monetary






13. 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






14. All investment spending by government and business firms






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






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






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






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






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






20. 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






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






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






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






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






25. 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






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






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






28. Personal income less income taxes






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






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






31. Cyclical unemployment is at 0






32. Maximum output of business cycle






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






34. Cost of living allowance






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






36. The average of all prices is falling






37. GDP = C + Ig + G + Xn






38. Frictional + structural unemployment






39. 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.






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






41. Output sacrificed due to unemployment






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






43. Temporary and associated with turnover in the labor market






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






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


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






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






48. Periodic and predictable economic changes






49. Inflation caused by excess demand in the economy






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