_________ inflation can be explained by an ________ shift in the aggregate _________ curve.
a. Demand-pull, leftward, demand
b. Cost-push, rightward, supply
c. Demand-pull, leftward, supply
d. Cost-push, rightward, supply
QUESTION 2The money that households might hold either as money or in interest-bearing assets, depending on the interest rate, is called the:
a. precautionary demand.
b. transactions demand.
c. speculative demand.
d. liquidity motive.
e. investment motive.
QUESTION 3If real GDP declines for at least one-half year, the economy is experiencing a:
a. depression.
b. decline.
c. recession.
d. growth recession.
e. deflation.
QUESTION 4When the economy is experiencing high inflation and high unemployment at the same time, then it is experiencing:
a. stagnation.
b. deflation.
c. reflation.
d. stagflation.
e. innation.
QUESTION 5The speculative demand for holding money is when people hold money:
a. instead of near money.
b. to transact purchases they expect to make.
c. as insurance against unexpected needs.
d. to speculate in the stock market.
e. to take advantage of changes in interest rates.
QUESTION 6If you look for a job for eighteen months after graduation, but fail to generate an offer, even after lowering your expectations, the economy is probably in the business cycle phase called a:
a. recession.
b. peak.
c. boom.
d. recovery.
e. trough.
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