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3 Written questions

3 Multiple choice questions

  1. a combination of inflation and recession, usually resulting from supply shock
  2. a curve that shows the relationship in the long-run between the price level and the quantity of real GDP supplied
  3. the actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomics policy objective

3 True/False questions

  1. menu coststhe costs to firms of changing prices

          

  2. aggregate demand and aggregate supply modela model that explains short-run fluctuations in real GDP and the price level

          

  3. fiscal policythe actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomics policy objective