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3 Written questions

3 Multiple choice questions

  1. the costs to firms of changing prices
  2. the actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomics policy objective
  3. a curve that shows the relationship in the short-run between the price level and the quantity of real GDP supplied by firms

3 True/False questions

  1. stagflationa combination of inflation and recession, usually resulting from supply shock


  2. supply shocka unexpected event that causes the short-run aggregate supply curve to shift


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


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