New Keynesians Hypothesize That

question 298

Multiple Choice

New Keynesians hypothesize that

• A) the relationship between inflation and unemployment is exploitable in the long run.
• B) the relationship between inflation and unemployment is exploitable in the short run.
• C) there is no relationship between inflation and unemployment.
• D) fluctuations in output are largely caused by supply shocks.

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Definitions:

Theodore Roosevelt

The 26th President of the United States (1901-1909), known for his energetic personality, range of interests and achievements, progressive reforms in business and labor, and vigorous foreign policy, including the Panama Canal construction.

Woodrow Wilson

The 28th President of the United States, serving from 1913 to 1921, who led the country through World War I and crafted the League of Nations concept.

World War I

A global conflict that lasted from 1914 to 1918, involving many of the world's great powers, and marked by trench warfare and massive casualties.

Democracy

A form of government where power is vested in the people, who rule either directly or through freely elected representatives.