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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 measured at current prices - and thus unadjusted figure for GDP






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






3. Cost of living allowance






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






5. 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)






6. 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.






7. Frictional + structural unemployment






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






9. 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






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






11. 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






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






13. Cyclical unemployment is at 0






14. All investment spending by government and business firms






15. GDP = C + Ig + G + Xn






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






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






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






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






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






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






22. Output sacrificed due to unemployment






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






24. 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






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






26. Consumption - investment - government - and net exports






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






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






29. 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






30. Recurrent ups and downs of economic activity






31. Temporary and associated with turnover in the labor market






32. Periodic and predictable economic changes






33. The sale of goods and services to households






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






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






36. Maximum output of business cycle






37. 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






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






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






40. Monetary






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






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






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






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






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






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






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






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


49. Inflation caused by excess demand in the economy






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