In answering the question Did the Civil War help promote economic growth and industrialization? Hughes and Cain (2011) conclude that
(a) the war, rather than being a major stimulus to industry, was actually a great drain that slowed U.S. economic development for a time.
(b) the war was indeed a major stimulus to industry because it promoted the building of wartime factories and new technology, which then provided a basis for rapidly growing production levels when peace came.
(c) the war was a setback for the South but a great stimulus for the North.
(d) the war seemed to have had no overall impact on the economic growth of the nation.
Question 2
According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only.
b. will shift the aggregate demand schedule only.
c. will shift both the aggregate demand and aggregate supply schedules.
d. None of the above
