Introduction to Macroeconomics (100%)

What area of economics focuses on the interactions between individual consumers and producers? aggregates macroeconomics microeconomics markets

microeconomics

In macroeconomics, the economy can best be understood through the use of money. models. pricing. debates.

models.

Which statement best describes why a government's actions are important in macroeconomics? Check all that apply. Government controls industry through policy. Government is both a consumer and a producer. Government can prevent changes and challenges. Government can use policy to influence the economy. Government can accurately predict economic trends.

Government controls industry through policy Government is both a consumer and a producer Government can use policy to influence the economy.

Which best describes the purpose served by economic models within an economic system? Models identify patterns. Models determine the business cycle. Models control change. Models define global demand.

Models identify patterns.

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 remains constant. Output increases. Output cannot be predicted. Output reacts differently.

Output reacts differently.

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. Output increases. Output cannot be predicted. Output decreases.

Output remains constant.

In microeconomics, what occurs when equilibrium is reached? Prices decline. Prices increase. Prices are set. Prices fluctuate.

Prices are set.

Which statement best describes the circular flow model? The model represents the movement of money and resources throughout the economy. The model represents the interactions within sectors. The model represents the flow of goods and services abroad. The model represents the changing relationships between actors.

The model represents the movement of money and resources throughout the economy.

Why are imports, which bring goods into a country, considered a leakage factor? Imports do not generate domestic income. Domestic industry loses ground as imports increase. Imports are taxed heavily, which is a secondary leakage factor. The money paid to producers of imports leaves the country.

The money paid to producers of imports leaves the country.

Which body or group is most able to use money to influence the economy? government suppliers firms producers

government