Monetary policy
a. can be implemented quickly and most of its impact on aggregate demand occurs very soon after policy is implemented.
b. can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented.
c. cannot be implemented quickly, but once implemented most of its impact on aggregate demand occurs very soon afterward.
d. cannot be implemented quickly and most of its impact on aggregate demand occurs months after policy is implemented.
b
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Recall the Application. By the end of the last phase of quantitative easing in late 2014, that value of the Fed's assets was
A) $1 trillion. B) $2 trillion. C) $3 trillion. D) $4.5 trillion.
According to the authors of your text, a politician's interest in getting reelected
A) expands the politician's time horizon. B) leads the politician to concentrate on policies capable of generating short-run benefits. C) further encourages the politician to conform more to acting in the public interest. D) is based chiefly on selfish interest.
In order to minimize deadweight loss generated by taxation, a tax should be placed on goods that are:
A. price elastic. B. price inelastic. C. expensive. D. popular.