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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. Maximum output of business cycle






2. Personal income less income taxes






3. Consumption - investment - government - and net exports






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






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






6. Output sacrificed due to unemployment






7. Cyclical unemployment is at 0






8. Recurrent ups and downs of economic activity






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






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






11. The average of all prices is falling






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






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






14. 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






15. Cost of living allowance






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






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






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






19. 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






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






21. GDP = C + Ig + G + Xn






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






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






24. The sale of goods and services to households






25. 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






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






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






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






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






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






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






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






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






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






35. Inflation caused by excess demand in the economy






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






37. 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)






38. Periodic and predictable economic changes






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






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






41. All investment spending by government and business firms






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






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






44. 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






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


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






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






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






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






50. 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