9 min read
This study guide covers inflation, monetary theory, and their relationship. Key inflation concepts include demand-pull, cost-push, and the wage-price spiral. The guide also explains the Federal Reserve's influence on inflation and dives into the Theory of Monetary Neutrality and the Quantity Theory of Money. Finally, it provides practice questions and exam tips for the AP Macroeconomics exam.
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Question 1 of 11
Inflation is like a hot air balloon 🎈 - prices are going ____! Which of the following best describes inflation?
A sustained decrease in the general price level
A rise in the general price level
A decrease in the money supply
A period of economic stagnation