Introduction to Macroeconomics

Which best describes the purpose served by economic system?

Models identify patterns.

The aggregate is

the total amount of goods demanded or supplied.

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.

2.3.5

The circular flow model examines interactions between which sectors of the economy? Check all that apply.

2,3,5

The circular flow model examines interactions between two groups?

Household & Firm

In microeconomics, what occurs when equilibrium is reached?

Prices are set.

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

They take money out of the economic system?

In microeconomics, price helps determine both supply and demand. Which other factors also help determine each?

the Supply is determined by production costs, and demand is determined by need for the product.

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

the money paid to producers of imports leaves the country.