The time required _____ is not a time lag associated with using discretionary policy to correct an economic problem
a. to recognize the problem
b. to decide how to handle the problem
c. to set a policy change in action
d. for a policy to affect economic variables
e. to observe public reaction after a policy announcement is made
e
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The type of good with the largest import in the U.S. is:
A. capital goods. B. consumer goods. C. industrial goods. D. automobiles.
Neo-Keynesians believe that the government will never have to choose between policies to control unemployment and policies to control inflation
Indicate whether the statement is true or false
In the short-run an increase in the costs of production makes
a. output and prices rise. b. output rise and prices fall. c. output fall and prices rise. d. output and prices fall.
Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $80,000. The retailer, in turn, brings in $155,000 from selling the bulbs directly to final customers. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year?
What will be an ideal response?