Intro to macro economics
Which body or group is most able to use money to influence the economy
Government
In macroeconomics, the economy can best be understand through the use of
Models
The graph shows price and total output in the short and long run. According to this graph how does supply behave in the long run
Out put remains constant.
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 short run and long run?
Output reacts differently
Which statement best describes the circular flow model?
WRONG! The model represents the interactions within sectors
Which best describes what occurs in the product market
The exchange of goods and services for money
A long run equilibrium occurs when a long run aggregate supply and aggregate demand meet. What does having long run equilibrium indicate about a society
The society is using all of its resources efficiently.
Which best describes why taxes and savings are considered leakage factors
They take money out of the economic system
In microeconomics, what occurs when equilibrium is reached?
Prices are set
In microeconomics, price helps determine both quantity supplied and quantity demanded. Which other factors also help determine each?
Quantity supplied is determined by production costs and quantity demanded is determined by desire for the product.
