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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. 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.






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






3. The average of all prices is falling






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






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






6. Recurrent ups and downs of economic activity






7. Monetary






8. Output sacrificed due to unemployment






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






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






11. Maximum output of business cycle






12. All investment spending by government and business firms






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






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






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






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


17. GDP = C + Ig + G + Xn






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






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






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






21. Frictional + structural unemployment






22. Consumption - investment - government - and net exports






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






24. Periodic and predictable economic changes






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






26. Inflation caused by excess demand in the economy






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






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






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






30. Personal income less income taxes






31. 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






32. 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






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






34. 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






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






36. Cost of living allowance






37. Cyclical unemployment is at 0






38. 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






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






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






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






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






43. Output measured at base year prices - and thus adjusted






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






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






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






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






48. The sale of goods and services to households






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






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