Introduction to Macroeconomics Answers

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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?

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A
Output remains constant.
B
Output increases.
C
Output cannot be predicted.
D
Output decreases.
2
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Which best describes what injector factors bring to an economic system?

A
factors of production
B
imports
C
consumers
D
money
3

The aim of the study of macroeconomics is to examine

A
the interactions between individual producers and consumers.
B
the behavior of factors affecting the economy.
C
the relationship between supply and demand.
D
the economy’s viability.
4

Which best describes what occurs in the product market?

A
the exchange of labor for capital
B
the exchange of goods and services for factors of production
C
the exchange of goods and services for money
D
the exchange of money for factors of production
5

The circular flow model examines interactions between which sectors of the economy? Select THREE answers.

A
private
B
government
C
foreign
D
tech
E
households
6

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

A
money.
B
models.
C
pricing.
D
debates.
7

Which statement best describes the circular flow model?

A
The model represents the movement of money and resources throughout the economy.
B
The model represents the interactions within sectors.
C
The model represents the flow of goods and services abroad.
D
The model represents the changing relationships between actors.
8

In microeconomics, what occurs when equilibrium is reached?

A
Prices decline.
B
Prices increase.
C
Prices are set.
D
Prices fluctuate.
9

The aggregate is

A
a type of economic system.
B
the total number of goods demanded or supplied.
C
a form of revenue.
D
the total profit made on sales.
10

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.

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