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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. The sale of goods and services to households






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






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






4. Monetary






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






6. Periodic and predictable economic changes






7. Personal income less income taxes






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






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






10. Consumption - investment - government - and net exports






11. 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






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






13. 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






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


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






16. 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)






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






18. Cyclical unemployment is at 0






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






20. Inflation caused by excess demand in the economy






21. Cost of living allowance






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






23. GDP = C + Ig + G + Xn






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






25. Maximum output of business cycle






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






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






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






29. 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






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






31. Output sacrificed due to unemployment






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






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






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






35. Recurrent ups and downs of economic activity






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






37. Temporary and associated with turnover in the labor market






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






39. All investment spending by government and business firms






40. 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






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






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






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






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






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






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






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






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






49. Frictional + structural unemployment






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