Introduction to Macroeconomics Answers

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

A
Models identify patterns.
B
Models determine the business cycle.
C
Models control change.
D
Models define global demand.
23

What is the relationship between aggregate demand and the price level?

A
They are inversely related.
B
They are directly related.
C
They are unrelated.
D
They fluctuate randomly.
24

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

A
a family’s finances
B
trade at a duty-free shop on the U.S.-Canadian border
C
International Monetary Fund policy
D
a small company’s supply contract for a local town

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