Recent Research by Keynesians and Classicals Has Led to

question 88

Multiple Choice

Recent research by Keynesians and classicals has led to

• A)a reconciliation of the types of models they use.
• B)the recognition by classical economists that prices adjust very slowly.
• C)convincing evidence that TFP shocks are the dominant force affecting the business cycle.
• D)the refutation of the efficiency wage model.

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Definitions:

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, which lasted from the end of World War II until the dissolution of the Soviet Union in 1991.

Monroe Doctrine

A principle of US foreign policy that opposed European colonialism in the Americas and stated that any intervention by external powers in the politics of the Americas is a potentially hostile act against the US.

Western Hemisphere

The Western Hemisphere encompasses all territories located west of the Prime Meridian to the International Date Line, including both the Americas and surrounding waters.

Mutually Assured Destruction

A military doctrine holding that full-scale use of nuclear weapons by opposing sides would result in the destruction of both the attacker and the defender.