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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 average of all prices is falling






2. Consumption - investment - government - and net exports






3. Inflation caused by excess demand in the economy






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






5. 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






6. Recurrent ups and downs of economic activity






7. 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.






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






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






10. Periodic and predictable economic changes






11. Monetary






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


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






14. 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






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






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






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






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






19. Personal income less income taxes






20. 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






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






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






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






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






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






26. 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






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






28. All investment spending by government and business firms






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






30. Frictional + structural unemployment






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






32. Temporary and associated with turnover in the labor market






33. Cost of living allowance






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






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






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






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






38. 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






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






40. Cyclical unemployment is at 0






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






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






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






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






45. The sale of goods and services to households






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






47. 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)






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






49. Output sacrificed due to unemployment






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