Chapter 16 Achieving Economic Stability   1. The ____________ is the sum of the monthly inflation and unemployment rates.     A) misery index     B) composite rate     C) despair rate     D) composite index   2. A period of stagnant growth combined with inflation is known as ____________.     A) stagnation     B) stagflation     C) hyperinflation     D) megaflation   3. The total value of goods and services that all firms would produce in a specific period of time at various price levels is called ____________.     A) aggregate supply     B) aggregate demand     C) cumulative goods     D) cumulative services   4. An increase in saving will cause the aggregate demand curve to __________.     A) stay the same     B) shift to the right     C) shift to the left     D) curve upward   5. The aggregate demand curve has a __________ slope.     A) vertical     B) horizontal     C) positive     D) negative   6. ____________ policies are federal policies designed to increase or decrease total demand in the economy by shifting the aggregate demand curve to the right or to the left.     A) Short-run     B) Long-run     C) Supply-side     D) Demand-side   7. The use of government spending and taxing to influence economic activity is called __________ policy.     A) monetary     B) fiscal     C) structural     D) passive   8. According to Keynesian economics, only the _________ sector is big enough to step in and offset changes in investment sector spending.     A) consumer     B) government     C) investment     D) foreign trade   9. The _____________ like unemployment insurance and Social Security protect consumers and the economy in general if economic conditions worsen.     A) automatic stabilizers     B) automatic generators     C) mechanized stabilitators     D) mechanized generators   10. ____________ economics were influenced by the unemployment and other problems that occurred during the Great Depression of the 1930s.     A) Fiscal     B) Discretionary     C) Supply-side     D) Demand-side   11. The three-member group that reports on economic developments and proposes strategies to the president is called the ____________.     A) Council of Economic Advisers     B) Cabinet     C) Council of Economic Consultants     D) Whip