Assuming the Economy Is Experiencing a Recessionary Gap, Classical Economists

question 145

Multiple Choice

Assuming the economy is experiencing a recessionary gap, classical economists predict that:

• A) wages will remain fixed.
• B) monetary policy will sell government securities.
• C) higher wages will shift the short-run aggregate supply curve leftward.
• D) lower wages will shift the short-run aggregate supply curve rightward.

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Definitions:

Revolutionary Tribunals

Courts established in revolutionary periods, especially noted during the French Revolution, to try enemies of the revolution swiftly and without the same procedural rights as regular courts.

Spy Networks

Organized groups of spies that collect intelligence and conduct espionage operations for governments, organizations, or military units.

Townshend Acts

A series of British Acts of Parliament passed during 1767 and 1768 relating to the British colonies in America, which imposed duties on tea, lead, paint, paper, and glass.

Boston Massacre

The Boston Massacre was an incident that occurred on March 5, 1770, where British soldiers killed five civilian men, contributing to the unrest that led to the American Revolution.