Introduction To Macroeconomics Terms – Flashcards
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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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The circular flow model examines interactions between which two groups?
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households and firms
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In macroeconomics, the economy can best be understood through the use of
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NOT money. (right answer is almost definitely models)
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According to this graph, how does supply behave in the short run and long run?
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Output reacts differently.
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The aggregate is
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the total number of goods demanded or supplied.
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In microeconomics, what occurs when equilibrium is reached?
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Prices are set.
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According to this graph, how does supply behave in the long run?
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Output remains constant.
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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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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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Which body or group is most able to use money to influence the economy?
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government
