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Macroeconomics - p.328-340

Total questions: 6

Worksheet time: 3mins

Name
Class
Date
1.

The ___________ represents the negative short-run relationship between the unemployment rate and the inflation rate.

a)

Short-Run Phillips Curve

b)

Long-Run Phillips Curve

c)

Short-Run Aggregate Supply

d)

Short-Run Aggregate Demand

2.

The ___________ is the unemployment rate at which inflation does not change over time.

a)

Nonaccelerating Inflation Rate of Unemployment

b)

Accelerating Inflation Rate of Unemployment

c)

Stagnating Inflation Rate of Unemployment

d)

Decreasing Inflation Rate of Unemployment

3.

The ___________ shows the relationship between unemployment and inflation after expectations of inflation have had time to adjust to experience.

a)

Long-Run Phillips Curve

b)

Short-Run Phillips Curve

c)

Long-Run Aggregate Supply

d)

Long-Run Aggregate Demand

4.

___________ is the reduction in aggregate demand arising from the increase in the real burden of outstanding debt caused by deflation.

a)

Debt Deflation

b)

Debt Inflation

c)

Debt Stagflation

d)

Debt Decrease

5.

There is a ___________ on the nominal interest rate: it cannot go below zero.

a)

Zero Bound

b)

Zero Limit

c)

Zero Frontier

d)

Zero Curve

6.

A ___________ is a situation in which conventional monetary policy is ineffective because nominal interest rates are up against the zero bound.

a)

Liquidity Trap

b)

Solidity Trap

c)

Illiquidity Trap