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3 Written questions

3 Multiple choice questions

  1. the actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomics policy objective
  2. a curve that shows the relationship between the price level and the quantity of real GDP demanded by households, firms, and the government
  3. changes in federal taxes and purchases that are intended to achieve macroeconomics policy

3 True/False questions

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

          

  2. menu costsa combination of inflation and recession, usually resulting from supply shock

          

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