Introduction to Macroeconomics
Why are imports, which bring goods into a country, considered a leakage factor?
The money paid to producers of imports leaves the country.
The circular flow model examines interactions between which two groups?
households and firms
In macroeconomics, the economy can best be understood through the use of
NOT money. (right answer is almost definitely models)
According to this graph, how does supply behave in the short run and long run?
Output reacts differently.
The aggregate is
the total number of goods demanded or supplied.
In microeconomics, what occurs when equilibrium is reached?
Prices are set.
According to this graph, how does supply behave in the long run?
Output remains constant.
Which challenges faced by an economy are examined in macroeconomics? Check all that apply.
Which best describes why a government’s actions are important within macroeconomics?
Government can use policy to influence the economy.
Which body or group is most able to use money to influence the economy?