Flashcards About Introduction To Macroeconomics
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Which best describes why taxes and savings are considered leakage factors?
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They take money out of the economic system.
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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, financial, foreign
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What area of economics focuses on the interactions between individual consumers and producers?
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microeconomics
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Which challenges faced by an economy are examined in macroeconomics? Check all that apply.
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inflation, unemployment, decreased output
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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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NOT output increases.
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Why are imports, which bring goods into a country, considered a leakage factor?
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The money paid to producers of imports leaves the country.
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In microeconomics, what occurs when equilibrium is reached?
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Prices are set.
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Which best describes what injector factors bring to an economic system?
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money
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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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Which best describes the purpose served by economic models within an economic system?
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models identify patterns
