Introduction to Macroeconomics

Question 1

Which best describes what occurs in the product market?

Revolt · Accepted Answer

the exchange of goods and services for money

Question 2

Which body or group is most able to use money to influence the economy?

Revolt · Accepted Answer

government

Question 3

Which statement best describes the circular flow model?

Revolt · Accepted Answer

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

Question 4

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 5

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

Revolt · Accepted Answer

Models identify patterns.

Question 6

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

Revolt · Accepted Answer

They are inversely related.

Question 7

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

Revolt · Accepted Answer

The money paid to producers of imports leaves the country.

Question 8

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

Revolt · Accepted Answer

International Monetary Fund policy

Question 9

In microeconomics, what occurs when equilibrium is reached?

Revolt · Accepted Answer

Prices are set.

Question 10

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 short run and long run?

Revolt · Accepted Answer

Output reacts differently.

Introduction to Macroeconomics Answers

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