Which of the following terms refers to the time it takes to determine that a recession has occurred?
a. recognition lag
b. implementation lag
c. legislative lag
d. budgetary lag
a. recognition lag
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Economic growth is measured by
A) increases in the population. B) increases in GDP. C) increases in per capita real GDP. D) increases in the value of the total output of society.
Which of the following statements is correct?
A) The price level does not affect the level of real GDP demanded. B) The lower the price level, the more the aggregate demand curve shifts rightward. C) The lower the price level, the greater the quantity of real GDP demanded. D) The higher the price level, the more the aggregate demand curve shifts rightward. E) The lower the price level, the more the aggregate demand curve shifts leftward.
"No central bank can be indifferent to its currency's value in the foreign exchange market." Discuss
What will be an ideal response?
When economists say that there is a time lag in the effect of monetary policy, what do they mean?
a. That it takes time to observe the effects of fiscal policy on the economy b. That the Fed takes awhile to figure out what it wants to do c. That the Congress takes awhile to figure out what it wants to do d. That it takes time to observe the effects of monetary policy on the economy e. That the public needs time to decide how to respond to monetary policy changes