- Study guides, Class notes & Summaries

The main goal of macroeconomics are to study; - correct answer -how the economy is behaving -which factors are causing the economy to grow or shrink Key areas of macroeconomics study - correct answer -economic indicators -economic challenges -money -economic models Gross Domestic Product (GDP) - correct answer is the value of goods and services produced in a country in a year ...

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5 pages

Written in 2024/2025

Grade A+

RealGrades

Microeconomics - correct answer study of the individual units that make up the economy Macroeconomics - correct answer the study of the overall aspects and workings of an economy- inflation, growth, employment, interest rates, and the productivity of the economy as a whole Scarcity - correct answer refers to the limited nature of society's resources, given the society's unli...

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6 pages

Written in 2024/2025

Grade A+

RealGrades

A drawback of using market values to aggregate the quantities of goods and services produced in an economy is that: A. higher-priced items count more. B. GDP increases when not all goods are produced in greater quantities. C. market prices generally reflect the economic benefit consumers expect to receive from an item. D. not all economically valuable goods and services are bought and sold in markets. E. lower-priced items count more. - correct answer D...

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16 pages

Written in 2024/2025

Grade A+

RealGrades

Circular Flow Model - correct answer a model showing the flow of resources from consumers (households) to firms, and the flower of products from firms to consumers, as well as money flowers consisting of consumers' income arising from the sale of their resources and firms' revenues from the sale of their products Leakages - correct answer in the circular flow of income model, refers to the withdrawal from the inco...

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6 pages

Written in 2024/2025

Grade A+

RealGrades

macroeconomics - correct answer involves the study of the whole economy at the aggregate level policy objective - correct answer a target or goal that policy-makers aim to 'hit' short-run economic growth - correct answer Growth of real output resulting from using idle resources, including labour, thereby taking up the slack in the economy long-run economic growth - correc...

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26 pages

Written in 2024/2025

Grade A+

RealGrades

4 major issues of macro - correct answer Longterm economic growth, short run business fluctuations, employment, and inflation Recession - correct answer A period when economic activity is declining Long term average unemployment - correct answer 5.5% Disinflation - correct answer When the rate of inflation is falling Deflation - correct a...

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23 pages

Written in 2024/2025

Grade A+

RealGrades

Scarcity - correct answer the limited nature of society's resources; society cannot produce all the goods and services that people wish to have Economics - correct answer the study of how society manages its scarce resources Efficiency - correct answer the property of society getting the most it can from its scarce resources Equality - correct answer ...

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21 pages

Written in 2024/2025

Grade A+

RealGrades

How do economists use macroeconomics? - correct answer They use macroeconomics to assess the health of a nation's economy Macroeconomics - correct answer The branch of economics that studies the entire economy of a nation What are the three primary macroeconomic goals countries have? - correct answer 1. Ensure economic growth 2. Keep prices stable 3. Reach full employment ...

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4 pages

Written in 2024/2025

Grade A+

RealGrades

Which one of the following is a macroeconomic question? - correct answer How much would the unemployment rate fall if the economy grows by 4% this year? Which one of the following is NOT a macroeconomic question? - correct answer How much will the California drought drive up the price of fresh vegetables? Which one of the following is a macroeconomic question? - correct answer Wou...

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3 pages

Written in 2024/2025

Grade A+

RealGrades

What is the definition of macroeconomics? - correct answer Macroeconomics is the study of the performance of the economy as a whole, and the policies used to improve that performance. What role do economists have in macroeconomics? (3) - correct answer • Collect and manipulate data about total levels of production, expenditure and income in the economy • Interpret the data in order to describe and explain trends i...

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3 pages

Written in 2024/2025

Grade A+

RealGrades

economics - correct answer study of how to allocate scarce resources among competing ends macroeconomics - correct answer branch of economics that deals with the whole economy and issues--inflation, unemployment, GDP, national income, interest rates, exchange rates-- that affect most of society microeconomics - correct answer branch of economics that looks at decision making at th...

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8 pages

Written in 2024/2025

Grade A+

RealGrades

Equilibrium Quantity - correct answer The quantity supplied and the quantity demanded at the equilibrium price Equilibrium Price - correct answer The price that balances quantity supplied and quantity demanded Equilibrium - correct answer A situation in which the market price has reached the level at which quantity supplied equals quantity demanded Shifts in the Demand Curve - ...

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9 pages

Written in 2024/2025

Grade A+

RealGrades