The delay between when a policy action is taken and when they affect the economy is referred to as the
A) impact lag.
B) action lag.
C) recognition lag.
D) policy lag.
A
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The Fed has complete control over the money supply
Indicate whether the statement is true or false
Which theory states that education makes workers more productive?
In most developed economies, unemployment insurance benefits
a) are nonexistent b) paid for by insurance companies c) initially replace 100% of lost wages d) replace an increasing percentage of lost earnings as the duration of unemployment becomes prolonged e) become less generous as the duration of unemployment is prolonged
Behavioral economics suggests that people face human limitations that prevent them from examining every possible choice available to them, with the implication that
A) the consumer optimum implied by utility theory is an inappropriate approach to deriving demand curves. B) the consumer optimum implied by utility theory is an appropriate approach to deriving demand curves. C) marginal utility is always equal to zero. D) marginal utility is always negative.