Introduction To Macroeconomics Answers – Flashcards
16 test answers
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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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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.
answer
inflation unemployment decreased output
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Which body or group is most able to use money to influence the economy?
answer
government
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The circular flow model examines interactions between which sectors of the economy? Check all that apply.
answer
government business households
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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 microeconomics, what occurs when equilibrium is reached?
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Prices are set.
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In macroeconomics, the economy can best be understood through the use of
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models.
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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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In microeconomics, price helps determine both supply and demand. Which other factors also help determine each?
answer
Supply is determined by production costs, and demand is determined by need for the product
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Which best describes why taxes and savings are considered leakage factors?
answer
They take money out of the economic system.
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