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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. Frictional + structural unemployment






3. Cyclical unemployment is at 0






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






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






6. Personal income less income taxes






7. 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






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






9. The average of all prices is falling






10. The sale of goods and services to households






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






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






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






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






15. Temporary and associated with turnover in the labor market






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






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






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






19. Inflation caused by excess demand in the economy






20. Cost of living allowance






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






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






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






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






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






26. All investment spending by government and business firms






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






28. 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






29. 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)






30. 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






31. Output sacrificed due to unemployment






32. Consumption - investment - government - and net exports






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


34. 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.






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






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






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






38. Recurrent ups and downs of economic activity






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






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






41. 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






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






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






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






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






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






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






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






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






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