The economy entered a recession in January of 2015, but GDP data alluding to the start of the recession was not published and analyzed by the Fed until July 2015. This exemplifies a(n)
A) recognition lag.
B) implementation lag.
C) impact lag.
D) liquidity lag.
A
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Criteria for rationing goods and resources must be established because of
a. the law of comparative advantage. b. the use of capitalism as a form of economic organization. c. the inability of politicians to develop efficient forms of economic organization. d. scarcity imposed by nature.
In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the required reserve/deposit ratio is 10 percent. If the Central Bank raises the required reserve/deposit ratio making the new desired ratio equal to 15 percent, then the money supply in Macroland will ________ to ________ econs, assuming that the public does not wish to change the amount of currency it holds.
A. decrease; 5,000 B. increase; 4,000 C. decrease; 4,000 D. increase; 5,000
Entrepreneurship
A. Can result in economic losses. B. Always involves greater rewards than risks. C. Occurs in small businesses, but not large corporations. D. Cannot earn an economic profit.
If a corporation fails, the last recipients of funds that may remain are
A) preferred stockholders. B) common stockholders. C) bond holders. D) government tax collectors.