If the Economy Is Experiencing an Inflationary Gap, Keynesian Economists

question 21

True/False

If the economy is experiencing an inflationary gap, Keynesian economists advocate allowing flexible wages to shift the short-run aggregate supply curve (SRAC) upward and restore full employment.

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Definitions:

Effect Dependence

Reliance on others due to their capacity to provide rewards and punishment.

Information Dependence

Reliance on others for information about how to think, feel, and act.

Socialization

The process by which people learn the attitudes, knowledge, and behaviours that are necessary for a person to function in a group or organization.

Compliance

The act of conforming to, following, or acting in accordance with requests, standards, or rules.