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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. 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)






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






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






4. Cyclical unemployment is at 0






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






6. Periodic and predictable economic changes






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






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






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






10. Monetary






11. Cost of living allowance






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






13. Temporary and associated with turnover in the labor market






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






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






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






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






18. 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






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






20. Consumption - investment - government - and net exports






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






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






23. 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.






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






25. GDP = C + Ig + G + Xn






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






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






28. Recurrent ups and downs of economic activity






29. 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






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






31. Frictional + structural unemployment






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






33. Output sacrificed due to unemployment






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






35. The sale of goods and services to households






36. Maximum output of business cycle






37. 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






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






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






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






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






42. 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






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






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






45. The average of all prices is falling






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






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


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






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






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