1.Give 6 events that could cause Demand-Pull inflation.

2.Draw the initial effect of Demand-Pull inflation.Show the effect on real GDP and Price Level.(Be sure to label everything)

3.Give 2 sources of Cost-Push inflation.

4.Draw the initial impact of Cost-Push inflation.Show the effect on real GDP and Price Level.(Be sure to label everything)

5.Explain what stagflation is.

6.What will initially happen to price level and real GDP with

a.Demand-Pull Inflation?

b.Cost-Push Inflation

7.What does the Phillips curve show the relationship between?

8.a. What will happen to the short-run Phillips curve with an increase in the expected inflation rate?

b. What will happen to the long-run Phillips curve with an increase in the expected inflation rate?

9.If the natural unemployment rate decreases, what will happen to

a.The Long-Run Phillips curve?

b.The Short-Run Phillips curve?