Introduction to Macroeconomics

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

International Monetary Fund policy

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

Models identify patterns.

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

Money

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?

NOT Output increases.

A long-run equilibrium occurs when long-run aggregate supply and aggregate demand meet. What does having long-run equilibrium indicate about a society?

NOT The society is not using all of its resources effectively.

Which statement best describes the circular flow model?

NOT inflation bankruptcy decreased output

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.

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

government business households

Which best describes what occurs in the product market?

the exchange of goods and services for money