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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. Recurrent ups and downs of economic activity






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






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






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






5. 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






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






7. GDP = C + Ig + G + Xn






8. Inflation caused by excess demand in the economy






9. Frictional + structural unemployment






10. 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






11. Personal income less income taxes






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






13. Periodic and predictable economic changes






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






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






16. Monetary






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






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






19. 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)






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


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






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






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






24. Temporary and associated with turnover in the labor market






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






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






27. 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






28. 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






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






30. The sale of goods and services to households






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






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






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






34. Cyclical unemployment is at 0






35. Maximum output of business cycle






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






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






38. Cost of living allowance






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






40. The average of all prices is falling






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






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






43. 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






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






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






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






47. All investment spending by government and business firms






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






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






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