The Conclusion of a Study by Steven Davis and James

question 22

Multiple Choice

The conclusion of a study by Steven Davis and James Kahn is that:

• A) inflation is super-super neutral in the long run.
• B) the saving rate in the Solow model does not contribute to economic growth.
• C) the Phillips curve is flat.
• D) the output gap is consistently more volatile than most economists and policymakers believe.
• E) improvements in inventory management have reduced macroeconomic volatility.

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Definitions:

Stress Hormone

Hormones that are released into the body in response to stress, including cortisol and adrenaline, which prepare the body for a fight or flight response.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration; it plays an essential role in stress response, metabolism, and immune response.

Memory Interference

A phenomenon where one memory competes with or replaces another memory, often leading to forgetting or distorted recollections.

Anterograde Amnesia

The inability to form long-term memories of events occurring after a brain injury or brain surgery, although memories formed before the trauma are usually intact and short-term memory is unaffected.