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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. 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






2. Inflation caused by excess demand in the economy






3. Periodic and predictable economic changes






4. Cyclical unemployment is at 0






5. The sale of goods and services to households






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






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






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






9. 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






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






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






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






13. The average of all prices is falling






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






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






16. GDP = C + Ig + G + Xn






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






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






19. Temporary and associated with turnover in the labor market






20. 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






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






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






23. Consumption - investment - government - and net exports






24. Maximum output of business cycle






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






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






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






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






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






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






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






32. Personal income less income taxes






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






34. All investment spending by government and business firms






35. 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)






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






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






38. 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






39. Monetary






40. Cost of living allowance






41. Frictional + structural unemployment






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






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






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






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






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






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






48. Output sacrificed due to unemployment






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






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