Which of the following illustrates the wait-and-see lag?
A) Policymakers believe an economic downturn has occurred, but they decide not to take action until they are sure.
B) Policymakers are in the process of proposing policy measures to deal with the current economic slowdown.
C) Policymakers first learn of the recession when it is five months old.
D) Policymakers implement policy X, but it will be a few months before it starts working.
E) Policymakers agree to policy X, but it will be at least two months before the policy is implemented.
A
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Any capital resource that lacks clear title ownership is
A) the result of foreign direct investment. B) free capital. C) dead capital. D) capital destruction.
Which of the following contributed to the clear advancement of the automobile and steel industries?
(a) Oligopoly behavior (b) Voluntary export restrictions (c) Quotas set for the number of foreign products entering the U.S. (d) Dynamic entrepreneurialism
If the nominal GDP were to increase, but the real GDP were to increase by less from one year to the next, we could conclude:
A. prices went up, but output stayed the same. B. prices stayed the same, but output went up. C. both prices and output went up. D. both prices and output stayed the same.
Which of the following fiscal policies cause a decrease in aggregate expenditures?
A. An increase in taxes and a decrease in government spending. B. An increase in transfer payments and an increase in government spending. C. An increase in transfer payments and a decrease in taxes. D. A decrease in taxes and an increase in government spending.