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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. Recurrent ups and downs of economic activity






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






3. Cost of living allowance






4. 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






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






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






7. 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






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






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






10. Cyclical unemployment is at 0






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






12. Maximum output of business cycle






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






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






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






16. Frictional + structural unemployment






17. 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)






18. 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.






19. Consumption - investment - government - and net exports






20. Output sacrificed due to unemployment






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






22. Personal income less income taxes






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






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






25. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






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






33. Inflation caused by excess demand in the economy






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


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






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






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. Periodic and predictable economic changes






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






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






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






42. Monetary






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






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






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






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






47. All investment spending by government and business firms






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






49. The sale of goods and services to households






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