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






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






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






4. All investment spending by government and business firms






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






6. The sale of goods and services to households






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






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






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






10. Monetary






11. Cost of living allowance






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


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






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






15. 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






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






17. 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






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






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






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






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






22. GDP = C + Ig + G + Xn






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






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






25. Frictional + structural unemployment






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






27. Output sacrificed due to unemployment






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






29. Consumption - investment - government - and net exports






30. Personal income less income taxes






31. 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






32. 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






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






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






35. Recurrent ups and downs of economic activity






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






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






38. Temporary and associated with turnover in the labor market






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






40. Inflation caused by excess demand in the economy






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






42. Maximum output of business cycle






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






44. Cyclical unemployment is at 0






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






46. Periodic and predictable economic changes






47. The average of all prices is falling






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






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






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