A demand curve with constant slope over all quantity values will always have a price elasticity of demand equal to -1.
Answer the following statement true (T) or false (F)
False
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If the public believes that the commitment to a nominal anchor is not credible, the effect of a positive aggregate demand shock is for ________
A) short-run aggregate supply to shift down B) short-run aggregate supply to remain unchanged C) short-run aggregate supply to shift up D) inflation, but not economic activity, to increase
Using productive resources to make capital goods requires that we
A) get everyone to agree on the best use of those resources. B) get government approval of our plan to make capital goods. C) forgo some level of current consumption. D) prove that the existence of the capital goods will not cause any environmental damage.
Competing-interest legislation is characterized by
a. concentrated costs and concentrated benefits b. concentrated benefits and widespread costs c. widespread benefits and widespread costs d. widespread benefits and concentrated costs e. zero costs
Which of the following sentences, based on the findings of neuroeconomics, is true?
a. Logical decision-making takes place in the limbic system. b. Emotional decision-making takes place in the prefrontal cortex. c. The prefrontal cortex confuses the logical side of the brain by bringing in emotions, and in some cases it takes over and demands immediate gratification. d. Adults have greater activity in their frontal lobes and lower activity in their amygdala than do teenagers. e. The amygdala takes a long-term perspective on the decision-making, looking at logical cost-benefit comparisons.