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3 Written questions

3 Multiple choice questions

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

3 True/False questions

  1. menu coststhe costs to firms of changing prices

          

  2. long-run aggregate supply curvea curve that shows the relationship in the short-run between the price level and the quantity of real GDP supplied by firms

          

  3. fiscal policychanges in federal taxes and purchases that are intended to achieve macroeconomics policy