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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. Inflation caused by excess demand in the economy






2. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP






3. 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






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






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






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






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






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






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






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






11. 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






12. Personal income less income taxes






13. Temporary and associated with turnover in the labor market






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






15. GDP = C + Ig + G + Xn






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






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






18. Output sacrificed due to unemployment






19. 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






20. Frictional + structural unemployment






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






22. Cyclical unemployment is at 0






23. All investment spending by government and business firms






24. 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






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






26. Recurrent ups and downs of economic activity






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






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






29. Monetary






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






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






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






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






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






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






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






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






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






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






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






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






42. Consumption - investment - government - and net exports






43. The sale of goods and services to households






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






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


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






47. Periodic and predictable economic changes






48. 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






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






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