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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. Cyclical unemployment is at 0
GDP gap
disposable income
four kinds of spending
full employment
2. GDI = w + i + r + pi + misc
full employment
labor force
GDI equation
GDP Price Index
3. Income earned that is available to resource suppliers and others before payment of personal taxes
largest category of GDI
CPI equation
personal income
price index
4. The number of dollars one receives as wages - rent - interest or profit
real GDP
national income
real income
nominal income
5. 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.
four kinds of spending
GDP gap
how to determine GDP
structural / expectational inflation
6. The sale of goods and services to households
Gross National Product (GNP)
consumption expenditures
COLA
Consumer Price Index (CPI)
7. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
personal income
government expenditures
seasonal changes
civilian labor force
8. Monetary
disposable income
expansion / recovery
GDP measures the market value of annual output and it is a __________ measure.
fixed income
9. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
rule of 70
unemployed
Gross National Product (GNP)
intermediate goods
10. Temporary and associated with turnover in the labor market
frictional unemployment
income approach
business cycle
personal income
11. Phase of the business cycle where output and employment begin to move toward full employment
GDP Price Index
expansion / recovery
circular flow diagram
expenditure approach
12. The average of all prices is falling
COLA
seasonal unemployment
deflation
how to determine GDP
13. A basic accounting measure of total production of goods and services of the national economy in one year
GDP (Gross Domestic Product)
full employment
structural / expectational inflation
circular flow diagram
14. Excess unemployment caused because the economy deviates from the long run output potential of the economy
participation rate
cyclical / deficit demand unemployment
labor force
how to determine GDP
15. Output measured at current prices - and thus unadjusted figure for GDP
nominal GDP
rule of 70
four kinds of spending
seasonal changes
16. The civilian labor force expressed as a percentage of the labor force population
deflation
unemployment rate
gross investment expenditures
participation rate
17. 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
GDI equation
seasonal unemployment
rule of 70
inflation
18. 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
seasonal changes
GDP gap
recession
natural employment
19. Periodic and predictable economic changes
rule of 70
labor force
final goods
seasonal changes
20. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
GDP measures the market value of annual output and it is a __________ measure.
real GDP
largest category of GDI
recession
21. Measures the amount of goods and services one's money can buy; measures purchasing power
nominal GDP
real GDP
nominal income
real income
22. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
cost push
three kinds of Ig expenditures
unemployed
GDP equation (expenditure approach)
23. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
gross investment expenditures
expenditure approach
unemployment rate
final goods
24. Output measured at base year prices - and thus adjusted
three kinds of Ig expenditures
net export expenditures
real GDP
peak
25. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
GDI equation
Consumer Price Index (CPI)
recession
CPI equation
26. Recurrent ups and downs of economic activity
business cycle
price index
income approach
nominal income
27. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
inflation
final goods
how to determine GDP
net export expenditures
28. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
personal income
Okun's Law
COLA
seasonal unemployment
29. A person who is available for and looking for work - but has none
unemployed
structural unemployment
trough
intermediate goods
30. All people living in a society who are of legal age to work
rule of 70
labor force
structural unemployment
price index
31. Frictional + structural unemployment
three kinds of Ig expenditures
trough
natural employment
cyclical / deficit demand unemployment
32. Consumption - investment - government - and net exports
cost push
business cycle
four kinds of spending
seasonal unemployment
33. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
civilian labor force
peak
frictional unemployment
COLA
34. Personal income less income taxes
disposable income
how to determine GDP
income approach
natural employment
35. Inflation arising from the supply or cost side of the economy
personal income
cost push
civilian labor force
participation rate
36. Cost of living allowance
COLA
government expenditures
real income
civilian labor force
37. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
expenditure approach
price index
seasonal unemployment
national income accounting
38. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
business cycle
non-production transactions
Gross National Product (GNP)
unemployment rate
39. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
intermediate goods
seasonal unemployment
structural / expectational inflation
GDP Price Index
40. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
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41. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
structural unemployment
participation rate
inflation
42. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
net export expenditures
nominal GDP
Consumer Price Index (CPI)
GDP gap
43. Inflation caused by excess demand in the economy
GDP (Gross Domestic Product)
demand pull
fixed income
Gross National Product (GNP)
44. 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
natural employment
unemployed
disposable income
price index
45. Results from laborers having a mismatched skill set with what is demanded by the current labor market
non-production transactions
structural unemployment
trough
personal income
46. 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
gross investment expenditures
GDP equation (expenditure approach)
Gross National Product (GNP)
real income
47. Phase of the business cycle where output and employment are at their lowest levels
natural employment
recession
trough
three kinds of Ig expenditures
48. GDP = C + Ig + G + Xn
fixed income
cost push
gross investment expenditures
GDP equation (expenditure approach)
49. A sustained rise in the general price level of an economy
cyclical / deficit demand unemployment
three kinds of Ig expenditures
inflation
unemployed
50. Output sacrificed due to unemployment
GDP gap
income approach
GDP equation (expenditure approach)
GDP Price Index