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


2. All investment spending by government and business firms






3. Periodic and predictable economic changes






4. Recurrent ups and downs of economic activity






5. GDP = C + Ig + G + Xn






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






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






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






9. Output sacrificed due to unemployment






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






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






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






13. Temporary and associated with turnover in the labor market






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






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






16. 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






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






18. Inflation caused by excess demand in the economy






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






20. Frictional + structural unemployment






21. 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






22. 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






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






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






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






26. The sale of goods and services to households






27. Cyclical unemployment is at 0






28. Consumption - investment - government - and net exports






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






30. 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.






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






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






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






34. Personal income less income taxes






35. 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






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






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






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






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






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






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






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






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






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






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






46. 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)






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






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






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






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