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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 who are on ______ incomes are hurt most by inflation






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


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






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






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






6. The average of all prices is falling






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






8. Personal income less income taxes






9. Temporary and associated with turnover in the labor market






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






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






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






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






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






15. 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






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






17. Cost of living allowance






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






19. Periodic and predictable economic changes






20. 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.






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






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






23. 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






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






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






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






27. The sale of goods and services to households






28. Inflation caused by excess demand in the economy






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






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






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






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






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






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






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






36. All investment spending by government and business firms






37. Recurrent ups and downs of economic activity






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






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






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






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






42. Output sacrificed due to unemployment






43. Cyclical unemployment is at 0






44. Maximum output of business cycle






45. Frictional + structural unemployment






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






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






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






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






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