​ Assume the Economy Is Experiencing an Inflationary Gap, Keynesian

question 238

Multiple Choice

​ Assume the economy is experiencing an inflationary gap, Keynesian economists would believe that:

• A) ​flexible wages will restore full employment.
• B) ​the federal government should decrease spending to shift the aggregate demand   curve leftward.
• C) ​the Federal Reserve should lower the interest rate.
• D) ​the federal government should increase spending to shift the aggregate demand curve rightward.

---

Definitions:

Milgram Obedience Studies

A series of social psychology experiments conducted by Stanley Milgram, demonstrating people's willingness to follow orders from an authority figure, even to the extent of causing harm to others.

Electric Shocks

Sudden discharges of electricity through a part of the body, used either as a therapeutic tool or as a result of accidental contact with electricity.

"Learner"

An individual who is actively engaged in the process of acquiring knowledge, skills, or understanding through study, experience, or teaching.

Stanley Milgram

A psychologist best known for his seminal research on obedience to authority, which demonstrated that people are willing to obey authority figures to a surprising degree, even when asked to perform actions conflicting with their personal conscience.