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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. Output measured at base year prices - and thus adjusted






3. Recurrent ups and downs of economic activity






4. Output sacrificed due to unemployment






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






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






7. Cost of living allowance






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






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






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






11. 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.






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






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






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






15. Monetary






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






17. Personal income less income taxes






18. 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






19. Maximum output of business cycle






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






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






22. Cyclical unemployment is at 0






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






24. All investment spending by government and business firms






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






26. Temporary and associated with turnover in the labor market






27. Consumption - investment - government - and net exports






28. The average of all prices is falling






29. GDP = C + Ig + G + Xn






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






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






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






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






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






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






36. Periodic and predictable economic changes






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






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






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






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






41. 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)






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






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






44. Frictional + structural unemployment






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






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






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






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






49. Inflation caused by excess demand in the economy






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