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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. Cost of living allowance






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






3. Output sacrificed due to unemployment






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






5. Temporary and associated with turnover in the labor market






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






7. Inflation caused by excess demand in the economy






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






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






10. Maximum output of business cycle






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






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






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


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






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






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






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






18. 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






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






20. Frictional + structural unemployment






21. Periodic and predictable economic changes






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






23. The average of all prices is falling






24. The sale of goods and services to households






25. Cyclical unemployment is at 0






26. All investment spending by government and business firms






27. GDP = C + Ig + G + Xn






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






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






30. Monetary






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






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






33. 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.






34. 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






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






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






37. 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






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






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






40. 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






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






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






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






44. Recurrent ups and downs of economic activity






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






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






47. 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)






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






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






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