Intro To Macroeconomics

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

microeconomics

In macroeconomics, the economy can best be understood through the use of

models

The aim of the study of macroeconomics is to examine

the behavior of factors affecting the economy.

Which best describes the purpose served by economic models within an economic system?

Models identify patterns.

In microeconomics, price helps determine both quantity supplied and quantity demanded. Which other factors can impact each by causing a shift to occur?

Quantity supplied is determined by production costs, and quantity demanded is determined by desire for the product.

why is the study of macroeconomics important to daily life?

Studying macroeconomics can help individuals understand how interactions between regions, governments, and institutions influence their lives. By studying macroeconomics, individuals can predict and deal with economic challenges, such as inflation and unemployment.

Which statement best describes the circular flow model?

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

Which best describes why taxes and savings are considered leakage factors?

They take money out of the economic system.

Leakages

are the withdrawal of income from the flow, such as savings, taxation and imports.

The circular flow model examines interactions between which two groups?

households and firms

injection

he introduction of income into the flow, such as additions to investment, government expenditure and exports.

aggregate

the total number of goods demanded or supplied.