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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. The sale of goods and services to households
GDP measures the market value of annual output and it is a __________ measure.
nominal income
consumption expenditures
labor force
2. The average of all prices is falling
participation rate
rule of 70
deflation
real GDP
3. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
participation rate
deflation
seasonal unemployment
full employment
4. A person who is available for and looking for work - but has none
participation rate
unemployed
GDP equation (expenditure approach)
intermediate goods
5. Inflation arising from the supply or cost side of the economy
Consumer Price Index (CPI)
cost push
GDP Price Index
Okun's Law
6. Those who are on ______ incomes are hurt most by inflation
fixed income
inflation
seasonal unemployment
real GDP
7. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
real GDP
real income
recession
8. 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
recession
participation rate
labor force
9. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
three kinds of Ig expenditures
structural / expectational inflation
nominal GDP
participation rate
10. Consumption - investment - government - and net exports
income approach
four kinds of spending
three kinds of Ig expenditures
net export expenditures
11. Output measured at current prices - and thus unadjusted figure for GDP
nominal income
nominal GDP
participation rate
recession
12. 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
CPI equation
GDP Price Index
income approach
cyclical / deficit demand unemployment
13. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
unemployment rate
intermediate goods
inflation
government expenditures
14. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
trough
GDP Price Index
expenditure approach
largest category of GDI
15. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
peak
national income accounting
circular flow diagram
expenditure approach
16. A basic accounting measure of total production of goods and services of the national economy in one year
GDP (Gross Domestic Product)
COLA
Okun's Law
inflation
17. The civilian labor force expressed as a percentage of the labor force population
participation rate
non-production transactions
GDP (Gross Domestic Product)
cost push
18. Output sacrificed due to unemployment
GDP gap
deflation
net export expenditures
trough
19. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
demand pull
CPI equation
seasonal changes
circular flow diagram
20. 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
national income
net export expenditures
Gross National Product (GNP)
trough
21. Personal income less income taxes
intermediate goods
disposable income
price index
recession
22. Recurrent ups and downs of economic activity
business cycle
GDI equation
unemployed
intermediate goods
23. Income earned that is available to resource suppliers and others before payment of personal taxes
national income accounting
personal income
business cycle
labor force
24. Output measured at base year prices - and thus adjusted
final goods
government expenditures
recession
real GDP
25. Phase of the business cycle where output and employment are at their lowest levels
labor force
CPI equation
trough
personal income
26. Periodic and predictable economic changes
seasonal changes
national income accounting
income approach
COLA
27. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
disposable income
income approach
rule of 70
GDP equation (expenditure approach)
28. The percentage of unemployed workers in the civilian labor force
cyclical / deficit demand unemployment
natural employment
unemployment rate
unemployed
29. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
net export expenditures
seasonal changes
GDI equation
frictional unemployment
30. Cost of living allowance
deflation
COLA
GDP Price Index
inflation
31. All investment spending by government and business firms
five sources of income
gross investment expenditures
national income accounting
circular flow diagram
32. Monetary
GDP Price Index
income approach
structural unemployment
GDP measures the market value of annual output and it is a __________ measure.
33. 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
how to determine GDP
cyclical / deficit demand unemployment
four kinds of spending
recession
34. Cyclical unemployment is at 0
rule of 70
full employment
expenditure approach
nominal GDP
35. Measures the amount of goods and services one's money can buy; measures purchasing power
recession
trough
net export expenditures
real income
36. Phase of the business cycle where output and employment begin to move toward full employment
cyclical / deficit demand unemployment
CPI equation
expansion / recovery
inflation
37. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
expansion / recovery
Gross National Product (GNP)
three kinds of Ig expenditures
unemployed
38. Excess unemployment caused because the economy deviates from the long run output potential of the economy
price index
national income accounting
cyclical / deficit demand unemployment
COLA
39. Results from laborers having a mismatched skill set with what is demanded by the current labor market
civilian labor force
non-production transactions
structural unemployment
fixed income
40. Temporary and associated with turnover in the labor market
cyclical / deficit demand unemployment
five sources of income
frictional unemployment
seasonal changes
41. Frictional + structural unemployment
personal income
natural employment
largest category of GDI
real income
42. Shows how money and goods and services flow between the various markets and players in the economy
fixed income
five sources of income
circular flow diagram
Gross National Product (GNP)
43. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
GDP equation (expenditure approach)
intermediate goods
unemployed
consumption expenditures
44. All people living in a society who are of legal age to work
labor force
expansion / recovery
CPI equation
fixed income
45. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
largest category of GDI
three kinds of Ig expenditures
Consumer Price Index (CPI)
unemployment rate
46. Maximum output of business cycle
disposable income
peak
recession
cyclical / deficit demand unemployment
47. Inflation caused by excess demand in the economy
net export expenditures
structural / expectational inflation
GDP measures the market value of annual output and it is a __________ measure.
demand pull
48. A sustained rise in the general price level of an economy
inflation
frictional unemployment
real GDP
national income accounting
49. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
recession
final goods
three kinds of Ig expenditures
full employment
50. GDP = C + Ig + G + Xn
real income
inflation
GDP equation (expenditure approach)
circular flow diagram