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:

Company Books Adjustment

Modifications made to a company's financial records to correct errors or account for unrecorded transactions.

Interest Revenue

Income earned by a company from the interest it charges on loans or from interest-bearing investments.

Earned

A term referring to revenues or incomes that have been generated from business activities or services provided.

Bank Charges

Fees assessed by a bank for its services or as penalties for not meeting specific account requirements.