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






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






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






4. GDP = C + Ig + G + Xn






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






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






7. Consumption - investment - government - and net exports






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






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






10. 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






11. Frictional + structural unemployment






12. Temporary and associated with turnover in the labor market






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






14. Monetary






15. 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






16. The average of all prices is falling






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






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






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






20. 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.






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






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






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






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






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






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






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






28. Maximum output of business cycle






29. The sale of goods and services to households






30. Output sacrificed due to unemployment






31. Cyclical unemployment is at 0






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






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






34. Periodic and predictable economic changes






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

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36. Personal income less income taxes






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






38. Inflation caused by excess demand in the economy






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






40. 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






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






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






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






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






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






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






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






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






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






50. 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