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






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






3. Personal income less income taxes






4. Maximum output of business cycle






5. Monetary






6. Inflation caused by excess demand in the economy






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






8. The average of all prices is falling






9. 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)






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






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






12. Recurrent ups and downs of economic activity






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






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






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






16. The sale of goods and services to households






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






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






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






20. Cost of living allowance






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






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






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






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






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


26. 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






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






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






29. GDP = C + Ig + G + Xn






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






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






32. 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






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






34. All investment spending by government and business firms






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






36. Consumption - investment - government - and net exports






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






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






39. 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






40. Frictional + structural unemployment






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






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






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






44. Output sacrificed due to unemployment






45. Temporary and associated with turnover in the labor market






46. Periodic and predictable economic changes






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






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






49. Cyclical unemployment is at 0






50. 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