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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
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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. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
fixed income
participation rate
real GDP
income approach
2. Output measured at base year prices - and thus adjusted
civilian labor force
consumption expenditures
real GDP
full employment
3. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
GDI equation
seasonal unemployment
intermediate goods
civilian labor force
4. GDP = C + Ig + G + Xn
cost push
government expenditures
GDP equation (expenditure approach)
four kinds of spending
5. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
Consumer Price Index (CPI)
CPI equation
national income accounting
structural / expectational inflation
6. Output measured at current prices - and thus unadjusted figure for GDP
frictional unemployment
civilian labor force
price index
nominal GDP
7. Consumption - investment - government - and net exports
three kinds of Ig expenditures
four kinds of spending
intermediate goods
natural employment
8. Those who are on ______ incomes are hurt most by inflation
non-production transactions
fixed income
peak
inflation
9. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
seasonal unemployment
GDI equation
structural / expectational inflation
national income accounting
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
Okun's Law
personal income
rule of 70
business cycle
11. Frictional + structural unemployment
trough
final goods
nominal income
natural employment
12. Temporary and associated with turnover in the labor market
national income accounting
frictional unemployment
GDP Price Index
real GDP
13. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
national income
unemployed
final goods
business cycle
14. Monetary
three kinds of Ig expenditures
GDP measures the market value of annual output and it is a __________ measure.
nominal GDP
five sources of income
15. 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
GDP equation (expenditure approach)
demand pull
recession
peak
16. The average of all prices is falling
deflation
national income accounting
GDP (Gross Domestic Product)
price index
17. Excess unemployment caused because the economy deviates from the long run output potential of the economy
national income accounting
cyclical / deficit demand unemployment
trough
full employment
18. Phase of the business cycle where output and employment begin to move toward full employment
expansion / recovery
expenditure approach
seasonal changes
national income accounting
19. Phase of the business cycle where output and employment are at their lowest levels
trough
nominal income
final goods
COLA
20. 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.
GDP (Gross Domestic Product)
how to determine GDP
full employment
seasonal unemployment
21. A sustained rise in the general price level of an economy
inflation
GDP equation (expenditure approach)
Consumer Price Index (CPI)
gross investment expenditures
22. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
trough
consumption expenditures
intermediate goods
seasonal unemployment
23. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
national income accounting
CPI equation
non-production transactions
gross investment expenditures
24. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods
national income accounting
five sources of income
government expenditures
unemployment rate
25. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
net export expenditures
four kinds of spending
largest category of GDI
seasonal unemployment
26. A basic accounting measure of total production of goods and services of the national economy in one year
expenditure approach
seasonal changes
GDP (Gross Domestic Product)
consumption expenditures
27. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
four kinds of spending
frictional unemployment
CPI equation
deflation
28. Maximum output of business cycle
real GDP
unemployed
expansion / recovery
peak
29. The sale of goods and services to households
full employment
consumption expenditures
unemployment rate
COLA
30. Output sacrificed due to unemployment
GDP gap
seasonal changes
COLA
frictional unemployment
31. Cyclical unemployment is at 0
participation rate
full employment
labor force
GDP gap
32. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
rule of 70
non-production transactions
three kinds of Ig expenditures
labor force
33. The number of dollars one receives as wages - rent - interest or profit
cost push
peak
business cycle
nominal income
34. Periodic and predictable economic changes
national income accounting
nominal GDP
cost push
seasonal changes
35. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
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36. Personal income less income taxes
disposable income
inflation
CPI equation
civilian labor force
37. The total net sales of goods sold abroad minus the total net spent on purchases from other countries
expenditure approach
net export expenditures
Okun's Law
peak
38. Inflation caused by excess demand in the economy
deflation
price index
consumption expenditures
demand pull
39. GDI = w + i + r + pi + misc
government expenditures
GDP measures the market value of annual output and it is a __________ measure.
GDI equation
rule of 70
40. 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
cyclical / deficit demand unemployment
GDP Price Index
COLA
natural employment
41. Shows how money and goods and services flow between the various markets and players in the economy
trough
structural unemployment
nominal income
circular flow diagram
42. The civilian labor force expressed as a percentage of the labor force population
natural employment
four kinds of spending
expenditure approach
participation rate
43. All people living in a society who are of legal age to work
nominal GDP
expenditure approach
labor force
structural unemployment
44. Results from laborers having a mismatched skill set with what is demanded by the current labor market
national income
CPI equation
structural unemployment
GDP equation (expenditure approach)
45. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance
structural unemployment
rule of 70
income approach
largest category of GDI
46. The percentage of unemployed workers in the civilian labor force
seasonal unemployment
net export expenditures
deflation
unemployment rate
47. A person who is available for and looking for work - but has none
unemployed
government expenditures
real income
CPI equation
48. Inflation arising from the supply or cost side of the economy
cost push
COLA
disposable income
natural employment
49. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
seasonal unemployment
consumption expenditures
peak
national income accounting
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
cyclical / deficit demand unemployment
Gross National Product (GNP)
consumption expenditures
personal income