Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If the condition of the economy at point E is realized by policy makers when the economy is at point G, policy is likely to be inappropriate due to
A. crowding out.
B. the response lag.
C. the recognition lag.
D. the implementation lag.
Answer: C
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In 2008, the Treasury and Federal Reserve took several actions in response to the deepening financial crisis. One action was the Treasury's move to have the federal government take control of
A) JPMorgan Chase. B) Fannie Mae and Freddie Mac. C) the Federal Deposit Insurance Corporation (FDIC). D) Lehman Brothers.
If a good is normal and its price decreases,
a. the income effect will be positive and the substitution effect will be positive. b. the income effect will be negative and the substitution effect will be negative. c. the income effect will be positive and the substitution effect will be negative. d. the income effect will be negative and the substitution effect will be positive.
A decision to supply labor or not to supply it is also a decision to
a. earn the highest possible wage. b. demand or forgo a certain amount of leisure. c. be as productive as possible. d. join the union.
Which of the following is NOT a determinant of the demand for gasoline?
A. The price of automobiles B. The price of diesel C. The supply of gasoline D. Consumers' incomes