To Combat Inflation in 1955 and 1956, the Fed Reduced

question 48

Multiple Choice

To combat inflation in 1955 and 1956, the Fed reduced the money supply. In terms of the AS/AD model, this change should have:

• A)shifted the AD curve to the left.
• B)shifted the AD curve to the right.
• C)made the AD curve flatter.
• D)made the AD curve steeper.

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Definitions:

1879 in Germany

Marks the year when Wilhelm Wundt founded the first laboratory dedicated to experimental psychology, marking the birth of psychology as a distinct scientific discipline.

Wilhelm Wundt

Often referred to as the father of modern psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.

Stimulus-Response Associations

The connection formed between a stimulus and a natural or learned reaction.

Immediate Experience

Direct, real-time perception and sensation of events without the filter of reflection or analysis.