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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
Start Test
Study First
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. Phase of the business cycle where output and employment are at their lowest levels
final goods
trough
largest category of GDI
recession
2. Consumption - investment - government - and net exports
five sources of income
fixed income
GDP measures the market value of annual output and it is a __________ measure.
four kinds of spending
3. A person who is available for and looking for work - but has none
participation rate
Okun's Law
unemployed
disposable income
4. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
CPI equation
GDP gap
cost push
government expenditures
5. Measures the amount of goods and services one's money can buy; measures purchasing power
GDP (Gross Domestic Product)
structural unemployment
GDP measures the market value of annual output and it is a __________ measure.
real income
6. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
net export expenditures
rule of 70
intermediate goods
largest category of GDI
7. The sale of goods and services to households
structural unemployment
peak
consumption expenditures
largest category of GDI
8. Output sacrificed due to unemployment
civilian labor force
gross investment expenditures
GDP gap
income approach
9. GDP = C + Ig + G + Xn
Consumer Price Index (CPI)
GDP equation (expenditure approach)
four kinds of spending
recession
10. A sustained rise in the general price level of an economy
inflation
GDP equation (expenditure approach)
non-production transactions
business cycle
11. 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
national income accounting
participation rate
personal income
GDP Price Index
12. GDI = w + i + r + pi + misc
GDI equation
non-production transactions
COLA
final goods
13. Income earned that is available to resource suppliers and others before payment of personal taxes
personal income
GDP equation (expenditure approach)
gross investment expenditures
national income accounting
14. Output measured at base year prices - and thus adjusted
price index
national income
four kinds of spending
real GDP
15. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
intermediate goods
GDP Price Index
national income accounting
disposable income
16. Cyclical unemployment is at 0
price index
inflation
full employment
largest category of GDI
17. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
seasonal unemployment
expenditure approach
GDP measures the market value of annual output and it is a __________ measure.
GDP equation (expenditure approach)
18. Frictional + structural unemployment
natural employment
recession
final goods
national income
19. Inflation caused by excess demand in the economy
demand pull
intermediate goods
labor force
nominal GDP
20. Inflation arising from the supply or cost side of the economy
fixed income
seasonal changes
cost push
income approach
21. All people living in a society who are of legal age to work
full employment
structural unemployment
labor force
recession
22. 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)
natural employment
expenditure approach
largest category of GDI
structural unemployment
23. Cost of living allowance
nominal GDP
civilian labor force
COLA
inflation
24. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
cost push
disposable income
consumption expenditures
income approach
25. The number of dollars one receives as wages - rent - interest or profit
peak
nominal income
recession
Consumer Price Index (CPI)
26. 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.
participation rate
how to determine GDP
CPI equation
GDP (Gross Domestic Product)
27. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
rule of 70
final goods
unemployment rate
real income
28. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
disposable income
three kinds of Ig expenditures
peak
civilian labor force
29. Recurrent ups and downs of economic activity
real GDP
business cycle
trough
nominal GDP
30. Personal income less income taxes
disposable income
non-production transactions
business cycle
unemployed
31. Monetary
price index
deflation
intermediate goods
GDP measures the market value of annual output and it is a __________ measure.
32. Excess unemployment caused because the economy deviates from the long run output potential of the economy
peak
structural unemployment
cyclical / deficit demand unemployment
seasonal unemployment
33. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
GDP (Gross Domestic Product)
full employment
real GDP
five sources of income
34. 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
Gross National Product (GNP)
GDP equation (expenditure approach)
gross investment expenditures
national income
35. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
government expenditures
peak
deflation
CPI equation
36. Total income earned by resource suppliers for their contributions to the production of the GNP
business cycle
cost push
three kinds of Ig expenditures
national income
37. Output measured at current prices - and thus unadjusted figure for GDP
nominal GDP
GDP gap
net export expenditures
COLA
38. 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
net export expenditures
circular flow diagram
recession
nominal income
39. The civilian labor force expressed as a percentage of the labor force population
participation rate
deflation
GDI equation
fixed income
40. Phase of the business cycle where output and employment begin to move toward full employment
recession
income approach
four kinds of spending
expansion / recovery
41. All investment spending by government and business firms
non-production transactions
gross investment expenditures
consumption expenditures
GDP (Gross Domestic Product)
42. Maximum output of business cycle
expansion / recovery
peak
price index
business cycle
43. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
largest category of GDI
trough
COLA
expansion / recovery
44. A basic accounting measure of total production of goods and services of the national economy in one year
seasonal unemployment
GDP (Gross Domestic Product)
unemployment rate
rule of 70
45. The average of all prices is falling
business cycle
COLA
deflation
national income
46. 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
gross investment expenditures
rule of 70
deflation
net export expenditures
47. Shows how money and goods and services flow between the various markets and players in the economy
personal income
expansion / recovery
circular flow diagram
natural employment
48. The percentage of unemployed workers in the civilian labor force
CPI equation
unemployment rate
expenditure approach
COLA
49. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
structural / expectational inflation
GDP gap
GDP measures the market value of annual output and it is a __________ measure.
CPI equation
50. Periodic and predictable economic changes
expenditure approach
seasonal changes
how to determine GDP
GDI equation