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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. 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)






2. Periodic and predictable economic changes






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






4. Consumption - investment - government - and net exports






5. Output sacrificed due to unemployment






6. Personal income less income taxes






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


8. 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






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






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






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






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






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






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






15. 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






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






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






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






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






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






21. Monetary






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






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






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






25. Frictional + structural unemployment






26. All investment spending by government and business firms






27. 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






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






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






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






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






32. Cyclical unemployment is at 0






33. 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






34. The average of all prices is falling






35. The sale of goods and services to households






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






37. Maximum output of business cycle






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






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






40. Temporary and associated with turnover in the labor market






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






42. Inflation caused by excess demand in the economy






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






44. 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.






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






46. 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






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






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






49. Recurrent ups and downs of economic activity






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