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






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






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






4. Temporary and associated with turnover in the labor market






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






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






7. Frictional + structural unemployment






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






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






10. Periodic and predictable economic changes






11. GDP = C + Ig + G + Xn






12. 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






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






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






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






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






17. Inflation caused by excess demand in the economy






18. Consumption - investment - government - and net exports






19. Maximum output of business cycle






20. Output sacrificed due to unemployment






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






22. The sale of goods and services to households






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






24. 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.






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






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






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






28. Cyclical unemployment is at 0






29. 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






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






31. 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






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






33. Recurrent ups and downs of economic activity






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






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






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






39. Monetary






40. The average of all prices is falling






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






42. Personal income less income taxes






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






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






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






46. Cost of living allowance






47. 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






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






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


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