Introduction to Macroeconomics

Question 1

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 2

The aim of the study of macroeconomics is to examine

Revolt · Accepted Answer

the behavior of factors affecting the economy.

Question 3

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

Revolt · Accepted Answer

government

Question 4

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

Revolt · Accepted Answer

Models identify patterns.

Question 5

In microeconomics, what occurs when equilibrium is reached?

Revolt · Accepted Answer

Prices are set.

Question 6

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

Revolt · Accepted Answer

They take money out of the economic system.

Question 7

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 8

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 9

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

Revolt · Accepted Answer

models.

Question 10

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

Revolt · Accepted Answer

They are inversely related.

Introduction to Macroeconomics Answers

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