The lag between changes in the Fed's interest rate target and large responses of output means that the Fed may want to ________ interest rates ________ output recovers to its natural level
A) raise, after
B) lower, before
C) raise, before
D) lower, after
C
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A 20 percent increase in the quantity of pizza demanded results from a 10 percent decline in its price. The price elasticity of demand for pizza is
A) 0.5. B) 2.0. C) 10.0. D) 20.0.
Concentration ratios are generally computed for ________ markets
A) local B) regional C) national D) global
An example of an intermediate good would be
A) the soda pop sold by Quiznos. B) the bread that goes into a sub sandwich that is sold by Quiznos. C) the potato chips sold by Quiznos. D) a sub sandwich sold by Quiznos.
When policy makers choose between tax policy and spending policy to affect the level of aggregate demand, they tend to choose on the basis of
a. how large a public sector they want. b. how much they want to change aggregate demand. c. how much they want to change aggregate supply. d. which has the larger multiplier.