Outside lags occur because
A) it takes time to identify a problem.
B) firms must change investment plans before monetary policy can be effective.
C) once changes are finally diagnosed and implemented, policies are immediately effective.
D) once a problem is diagnosed, it still takes time to implement policy changes.
B
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Define autonomous consumption and explain how it is represented on a consumption function graph
What will be an ideal response?
A firm's demand for labor increases and its demand curve for labor shifts rightward if
A) the wage rate falls. B) the price of its product falls. C) its value of marginal product decreases. D) an advance in technology increases the marginal product of labor.
The money demand curve is
a. downward sloping b. upward sloping c. horizontal d. vertical e. has an inverted V-shape.
Refer to the information provided in Table 36.2 below to answer the question(s) that follow. Table 36.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 36.2. The error for point D is equal to
A. -2. B. -1. C. +2. D. +4.