1.An aggressive union will shift the aggregate supply curve _________, causing prices to and real GDP to _________.
2. In the face of an upward shift in the aggregate supply curve, the Fed can increase the supply of money. This will prevent a recession, but will cause an increase in _________.
3. The evidence shows that lower inflation rates are associated with central bank _________.
4. During the 1980s, Germany had low inflation and an independent central bank. _________ (True/False)
5.The velocity of money is defined as _________ income divided by the supply of money.
6. According to the quantity equation, the product of money supply and velocity is equal to the product of _________ and _________.
7.The growth version of the quantity equation links the growth rates of _________, _________, _________, and _________.
8. If the growth rate of money supply is 5 percent a year with constant velocity and an annual inflation rate of 2 percent, the growth rate of real output is _________.