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






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


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






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






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






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






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






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






9. Temporary and associated with turnover in the labor market






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






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






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






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






14. 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)






15. 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






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






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






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






19. 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






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






21. Monetary






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






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






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






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






26. Output sacrificed due to unemployment






27. Cyclical unemployment is at 0






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






29. The sale of goods and services to households






30. GDP = C + Ig + G + Xn






31. Periodic and predictable economic changes






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






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






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






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






36. 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






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






38. Inflation caused by excess demand in the economy






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






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






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






42. Consumption - investment - government - and net exports






43. Frictional + structural unemployment






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






45. 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.






46. All investment spending by government and business firms






47. The average of all prices is falling






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






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






50. 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