Chapter 32 Post Quiz
Ensuring Price Stability

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Inflation	a. gain from unanticipated inflation.
	2. Low inflation	b. when prices rise slowly and predictably.
	3. Galloping inflation	c. occurs when aggregate demand rises more rapidly then the economy's productive potential.
	4. Hyperinflation	d. when inflation is in the double or triple digits.
	5. Debtors	e. results from rising costs during periods of high unemployment and slack resource utilization.
	6. Negative growth	f. associated with hyperinflation.
	7. Demand-pull inflation	g. when inflation is at a million or trillion percent per year.
	8. Cost-pull inflation	h. occurs when the AS and AD curves are moving steadily upward at the same rate.
	9. Inertial inflation	i. the unemployment rate consistent with a constant inflation rate.
	10. Phillips curve	j. when the general level of prices is rising.
	11. NAIRU	k. shows the inverse relationship between inflation and unemployment.
	12. Vertical	l. describes the long-run Phillips curve.