5.1: Introduction To Macroeconomics Flashcard
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The aim of study of macroeconomics is to examine
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the economy's behavior.
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Which best describes why a government's actions are important within macroeconomics
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Government can use policy to influence the economy.
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This is a graph showing price and total output in the short and long run. According to this graph, how does supply behave in the long run?
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Output remains constant.
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The aggregate is
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the total number of goods demanded or supplied.
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Which best describes the purpose served by economic models within an economic system?
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Models identify patterns.
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Which challenges faced by an economy are examined in macroeconomics? Check all that apply.
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Inflation (2), Unemployment (3), Decreased Output (5)
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Which body or group is most able to use money to influence the economy?
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government
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In microeconomics, what occurs when equilibrium is reached?
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Prices are set.
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The circular flow model examines interactions between which sectors of the economy? Check all that apply.
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Government (2), Business (3), Households (5)
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Which best describes what occurs in the product market?
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The exchange of goods and services for money
