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






2. All investment spending by government and business firms






3. 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






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






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






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






7. Temporary and associated with turnover in the labor market






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






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






10. 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.






11. 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






12. Recurrent ups and downs of economic activity






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






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






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






16. Output sacrificed due to unemployment






17. Cyclical unemployment is at 0






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






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






20. Cost of living allowance






21. 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)






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






23. 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






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






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






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






27. The average of all prices is falling






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






29. 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






30. Frictional + structural unemployment






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






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


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






34. Maximum output of business cycle






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






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






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






38. Periodic and predictable economic changes






39. Consumption - investment - government - and net exports






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






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






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






43. Inflation caused by excess demand in the economy






44. Monetary






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






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






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






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






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






50. 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