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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. Output sacrificed due to unemployment






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






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






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






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






6. 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






7. 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






8. 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






9. Inflation caused by excess demand in the economy






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






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






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






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






14. GDP = C + Ig + G + Xn






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






16. Temporary and associated with turnover in the labor market






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






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






19. Periodic and predictable economic changes






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






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






22. The sale of goods and services to households






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






24. 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)






25. Monetary






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






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






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






29. The average of all prices is falling






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






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






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






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






34. Cyclical unemployment is at 0






35. Maximum output of business cycle






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






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.






38. Recurrent ups and downs of economic activity






39. All investment spending by government and business firms






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






41. Cost of living allowance






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






43. Consumption - investment - government - and net exports






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






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






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






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






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


49. Frictional + structural unemployment






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