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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 in the long-run between the price level and the quantity of real GDP supplied
  3. the costs to firms of changing prices

3 True/False questions

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

          

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

          

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