The inside lag is the:
a. time between a shock to the economy and the policy action responding to that shock.
b. time between a policy action and its influence on the economy.
c. time between a shock to the economy and the influence on the economy of a policy action.
d. difference between the time it takes to implement monetary policy and the time it takes to implement fiscal policy.
Answer: a. time between a shock to the economy and the policy action responding to that shock.
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The above figure shows the market for game day t-shirts. If the price of t-shirts is $10, then
A) there is a surplus and the price of t-shirts will fall. B) there is a shortage and the price of t-shirts will fall. C) there is a shortage and the price of t-shirts will rise. D) there is a surplus and the price of t-shirts will rise. E) the market is in equilibrium.
Automobile manufacturers commonly sell new car models at the full suggested retail price during the first few years the car is on the market, and they do not offer rebates or discounts
After the initial sales period, the manufacturers typically offer rebates or discounts on these models. The marginal cost of manufacturing the cars is constant across time. Which of the following statements is true? A) The firms practice peak-load pricing by charging a higher price in the initial sales period. B) Early buyers have higher reservation prices for the new models, and the manufacturers maximize profits by charging these buyers a higher price. C) The marginal revenue from buyers who purchase these cars after the initial sales period must be lower that the marginal revenue from early buyers. D) To maximize profits, the firms equate the buyers' reservation prices across time.
A characteristic of a public good is that a public good is provided
A) to some businesses, but not to others. B) only in some states. C) to low income residents in some states. D) to many individuals at no additional cost.
Codetermination refers to
a. allowing worker participation but only at the shop floor. b. allowing representatives of labor on management boards. c. turning trade unions into company unions. d. the alliance between government and labor unions in Germany. e. all of the above.