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


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






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






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






5. Consumption - investment - government - and net exports






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






7. Monetary






8. Output sacrificed due to unemployment






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






10. Recurrent ups and downs of economic activity






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






12. 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)






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






14. Temporary and associated with turnover in the labor market






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






16. 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






17. Inflation caused by excess demand in the economy






18. 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






19. Periodic and predictable economic changes






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






21. 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






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






23. Maximum output of business cycle






24. 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






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






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






27. 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






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






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






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






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






32. GDP = C + Ig + G + Xn






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






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






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






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






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






38. The sale of goods and services to households






39. 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.






40. Frictional + structural unemployment






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






42. All investment spending by government and business firms






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






44. Personal income less income taxes






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






46. Cost of living allowance






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






48. The average of all prices is falling






49. Cyclical unemployment is at 0






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