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






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






3. Inflation caused by excess demand in the economy






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






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






6. Monetary






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






8. Maximum output of business cycle






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






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






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


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






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






14. Consumption - investment - government - and net exports






15. GDP = C + Ig + G + Xn






16. Recurrent ups and downs of economic activity






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






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






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






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






21. Temporary and associated with turnover in the labor market






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






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






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






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






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






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






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






29. Personal income less income taxes






30. 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)






31. 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






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






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






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






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






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






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. Periodic and predictable economic changes






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






40. Cyclical unemployment is at 0






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






42. 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






43. Output sacrificed due to unemployment






44. 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






45. The sale of goods and services to households






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






47. The average of all prices is falling






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






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






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