1.6 Introduction to Macroeconomics

Question 1

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.

Revolt · Accepted Answer

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

Question 2

Which best describes what occurs in the product market?

Revolt · Accepted Answer

the exchange of goods and services for money

Question 3

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

Revolt · Accepted Answer

The society is using all of its resources efficiently.

Question 4

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

Revolt · Accepted Answer

models.

Question 5

Which statement best describes the circular flow model?

Revolt · Accepted Answer

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

Question 6

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?

Revolt · Accepted Answer

Output remains constant.

Question 7

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

Revolt · Accepted Answer

Models identify patterns.

Question 8

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

Revolt · Accepted Answer

money

1.6 Introduction to Macroeconomics Answers

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