The Existence of an Inflationary Gap Should Cause

question 75

Multiple Choice

The existence of an inflationary gap should cause

• A)wages to fall.
• B)prices to fall.
• C)unemployment to rise.
• D)net exports to rise.

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Definitions:

New Deal

A series of programs and projects instituted during the Great Depression by President Franklin D. Roosevelt with the aim of restoring prosperity to Americans.

Unregulated Free Market

An economic system without governmental oversight where prices are determined by unrestricted competition between privately owned businesses.

Consumer Individualism

A societal trend where individual consumers have the freedom to express themselves and make independent choices in the marketplace, reflecting personal identities and preferences.

Korematsu V. United States

1944 Supreme Court case that found Executive Order 9066 to be constitutional. Fred Korematsu, an American-born citizen of Japanese descent, defied the military order that banned all persons of Japanese ancestry from designated western coastal areas. The Court upheld Korematsu’s arrest and internment.