5.1: Introduction to Macroeconomics

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The aim of study of macroeconomics is to examine
the economy’s behavior.
Which best describes why a government’s actions are important within macroeconomics
Government can use policy to influence the economy.
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?

Output remains constant.
The aggregate is
the total number of goods demanded or supplied.
Which best describes the purpose served by economic models within an economic system?
Models identify patterns.
Which challenges faced by an economy are examined in macroeconomics? Check all that apply.
Inflation (2),
Unemployment (3),
Decreased Output (5)
Which body or group is most able to use money to influence the economy?
government
In microeconomics, what occurs when equilibrium is reached?
Prices are set.
The circular flow model examines interactions between which sectors of the economy? Check all that apply.
Government (2),
Business (3),
Households (5)
Which best describes what occurs in the product market?
The exchange of goods and services for money
Categories: Macroeconomics