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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. The sale of goods and services to households






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






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






4. Recurrent ups and downs of economic activity






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


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






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






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






9. Cyclical unemployment is at 0






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






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






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






13. Periodic and predictable economic changes






14. 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






15. 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






16. 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.






17. Maximum output of business cycle






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






19. 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






20. 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)






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






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






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






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






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






26. 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






27. Personal income less income taxes






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






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






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






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






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






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






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






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






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






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






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






39. 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






40. Cost of living allowance






41. Output sacrificed due to unemployment






42. Monetary






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






44. Inflation caused by excess demand in the economy






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






46. Frictional + structural unemployment






47. All investment spending by government and business firms






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






49. Consumption - investment - government - and net exports






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