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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. Temporary and associated with turnover in the labor market
GDP equation (expenditure approach)
business cycle
five sources of income
frictional unemployment
2. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
final goods
national income
expenditure approach
seasonal unemployment
3. Phase of the business cycle where output and employment begin to move toward full employment
expansion / recovery
business cycle
four kinds of spending
deflation
4. Monetary
GDP measures the market value of annual output and it is a __________ measure.
expenditure approach
GDI equation
trough
5. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
rule of 70
five sources of income
unemployment rate
Gross National Product (GNP)
6. 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
structural unemployment
rule of 70
GDI equation
personal income
7. 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)
expenditure approach
labor force
CPI equation
seasonal changes
8. A person who is available for and looking for work - but has none
real income
GDP gap
unemployed
business cycle
9. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
nominal GDP
price index
income approach
seasonal unemployment
10. Those who are on ______ incomes are hurt most by inflation
full employment
GDP Price Index
fixed income
labor force
11. Phase of the business cycle where output and employment are at their lowest levels
frictional unemployment
largest category of GDI
trough
nominal GDP
12. Inflation caused by excess demand in the economy
CPI equation
circular flow diagram
demand pull
income approach
13. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
GDI equation
business cycle
fixed income
three kinds of Ig expenditures
14. Output sacrificed due to unemployment
GDP gap
cyclical / deficit demand unemployment
four kinds of spending
national income accounting
15. Personal income less income taxes
GDP equation (expenditure approach)
real GDP
GDP measures the market value of annual output and it is a __________ measure.
disposable income
16. Income earned that is available to resource suppliers and others before payment of personal taxes
GDP gap
GDP Price Index
full employment
personal income
17. Output measured at base year prices - and thus adjusted
fixed income
non-production transactions
real GDP
gross investment expenditures
18. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
non-production transactions
Gross National Product (GNP)
demand pull
five sources of income
19. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
how to determine GDP
business cycle
GDP measures the market value of annual output and it is a __________ measure.
seasonal unemployment
20. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
Gross National Product (GNP)
four kinds of spending
Okun's Law
net export expenditures
21. Results from laborers having a mismatched skill set with what is demanded by the current labor market
Gross National Product (GNP)
CPI equation
structural unemployment
structural / expectational inflation
22. Total income earned by resource suppliers for their contributions to the production of the GNP
peak
inflation
income approach
national income
23. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
CPI equation
expenditure approach
five sources of income
intermediate goods
24. 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
full employment
price index
GDP measures the market value of annual output and it is a __________ measure.
unemployed
25. Cost of living allowance
four kinds of spending
COLA
expansion / recovery
real income
26. The civilian labor force expressed as a percentage of the labor force population
participation rate
non-production transactions
GDP (Gross Domestic Product)
income approach
27. Measures the amount of goods and services one's money can buy; measures purchasing power
unemployed
disposable income
COLA
real income
28. Shows how money and goods and services flow between the various markets and players in the economy
Okun's Law
recession
frictional unemployment
circular flow diagram
29. Cyclical unemployment is at 0
full employment
unemployment rate
final goods
GDP measures the market value of annual output and it is a __________ measure.
30. All people living in a society who are of legal age to work
expenditure approach
GDP equation (expenditure approach)
labor force
GDP measures the market value of annual output and it is a __________ measure.
31. Excess unemployment caused because the economy deviates from the long run output potential of the economy
five sources of income
cyclical / deficit demand unemployment
GDP Price Index
disposable income
32. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
33. The average of all prices is falling
five sources of income
consumption expenditures
national income
deflation
34. 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
four kinds of spending
real GDP
GDP Price Index
participation rate
35. Recurrent ups and downs of economic activity
rule of 70
business cycle
nominal income
five sources of income
36. The percentage of unemployed workers in the civilian labor force
GDI equation
final goods
unemployment rate
full employment
37. Output measured at current prices - and thus unadjusted figure for GDP
labor force
GDP equation (expenditure approach)
largest category of GDI
nominal GDP
38. Frictional + structural unemployment
inflation
CPI equation
deflation
natural employment
39. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
government expenditures
Gross National Product (GNP)
recession
expenditure approach
40. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
trough
demand pull
seasonal unemployment
structural / expectational inflation
41. GDP = C + Ig + G + Xn
GDP equation (expenditure approach)
non-production transactions
real GDP
cyclical / deficit demand unemployment
42. 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.
demand pull
disposable income
how to determine GDP
GDP gap
43. Periodic and predictable economic changes
seasonal changes
CPI equation
structural / expectational inflation
GDI equation
44. The sale of goods and services to households
nominal income
inflation
GDI equation
consumption expenditures
45. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
cyclical / deficit demand unemployment
Gross National Product (GNP)
Consumer Price Index (CPI)
personal income
46. 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
GDI equation
Gross National Product (GNP)
Okun's Law
structural unemployment
47. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
Okun's Law
fixed income
national income accounting
four kinds of spending
48. A sustained rise in the general price level of an economy
rule of 70
seasonal unemployment
seasonal changes
inflation
49. Consumption - investment - government - and net exports
four kinds of spending
peak
expenditure approach
expansion / recovery
50. GDI = w + i + r + pi + misc
nominal income
GDI equation
real GDP
GDP Price Index