Intro to Macroeconomics

Economic interactions involving which of the following would most likely be studied in macroeconomics?

International Monetary Fund policy

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.

Why are imports, which bring goods into a country, considered a leakage factor?

The money paid to producers of imports leaves the country.

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.

Which body or group is most able to use money to influence the economy?

government

The circular flow model examines interactions between which sectors of the economy? Select THREE answers.

government foreign households

The circular flow model examines interactions between which two groups?

households and firms

What area of economics focuses on the interactions between individual consumers and producers?

microeconomics

Which best describes what injector factors bring to an economic system?

money