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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. Periodic and predictable economic changes






3. Recurrent ups and downs of economic activity






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






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






6. Monetary






7. Temporary and associated with turnover in the labor market






8. 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)






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






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






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






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






13. Maximum output of business cycle






14. Personal income less income taxes






15. The average of all prices is falling






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


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






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






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






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






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






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






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






24. Cyclical unemployment is at 0






25. 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






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






27. GDP = C + Ig + G + Xn






28. 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






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






30. Cost of living allowance






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






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






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






34. All investment spending by government and business firms






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






36. Consumption - investment - government - and net exports






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






38. 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.






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






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






41. 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






42. The sale of goods and services to households






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






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






45. 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






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






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






48. Frictional + structural unemployment






49. Output sacrificed due to unemployment






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