Suppose the Economy Suffers a High Rate of Inflation

question 45

Multiple Choice

Suppose the economy suffers a high rate of inflation. According to Keynesian economists, the government should decrease employment by

• A) increasing money supply.
• B) balancing the budget.
• C) not doing anything.
• D) decreasing government spending.

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Definitions:

Blank Slate

A metaphorical term referring to the mind in its presumed original state unaffected by outside influences.

Accommodation

In cognitive psychology, the process of modifying existing mental frameworks to incorporate new information.

Incorporating New Experiences

The process of integrating new and novel stimuli or events into one's existing cognitive structures or knowledge base.

Current Schemas

Cognitive frameworks or structures that help individuals organize and interpret information based on current knowledge.