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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. 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






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






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






4. 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.






5. Maximum output of business cycle






6. Periodic and predictable economic changes






7. The average of all prices is falling






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






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






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






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






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






13. Frictional + structural unemployment






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






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






16. GDP = C + Ig + G + Xn






17. Monetary






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






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






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






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






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






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






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






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






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






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






28. Cyclical unemployment is at 0






29. Output sacrificed due to unemployment






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






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






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


33. 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






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






35. Cost of living allowance






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






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






38. Temporary and associated with turnover in the labor market






39. 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)






40. Inflation caused by excess demand in the economy






41. 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






42. 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






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






44. Consumption - investment - government - and net exports






45. Personal income less income taxes






46. 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






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






48. All investment spending by government and business firms






49. The sale of goods and services to households






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