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Test your basic knowledge |

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






2. 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






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






4. Periodic and predictable economic changes






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






6. 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)






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






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






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






10. Temporary and associated with turnover in the labor market






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






12. 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






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






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






15. All investment spending by government and business firms






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






17. Recurrent ups and downs of economic activity






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






19. Maximum output of business cycle






20. Cyclical unemployment is at 0






21. Monetary






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






23. Output sacrificed due to unemployment






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






25. 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






26. Inflation caused by excess demand in the economy






27. GDP = C + Ig + G + Xn






28. Personal income less income taxes






29. 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.






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






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






32. Cost of living allowance






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






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






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






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


37. Frictional + structural unemployment






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






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






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






41. The sale of goods and services to households






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






43. 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






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






45. 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






46. Consumption - investment - government - and net exports






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






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






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






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






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