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