A lag occurs in monetary policy because:
A. it takes time to implement a policy.
B. once policy is implemented, it takes time for a policy to work.
C. Republicans and Democrats fight over every policy.
D. both it takes time to implement a policy and once policy is implemented, it takes time for a policy to work are true.
Answer: D
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Dr. Smith on the Channel 6 news says, "The recent figures showing that the unemployment rate is lower this quarter than last quarter are a definite sign that our economy is coming out of the recession." Dr. Jones on the Channel 8 news says, "Recent figures showing that employment is lower this quarter than it was last quarter are a definite sign that our economy is still plunging deeper into the
recession." a. Is it possible for both unemployment and employment to fall at the same time? What factor could account for the observed phenomenon? b. In light of your answer, what do you think about the health of the economy relative to last quarter?
Early developers within a given industry benefit from economies of scale, in that they are able to
a. produce larger volumes at a lower cost. b. shape the product based on what the consumer wants. c. avoid competition by creating a monopoly. d. start big instead of having to start small.
Heterogeneity and the dynamic nature of labor markets are the principal causes of ________ unemployment.
A. frictional B. structural C. cyclical D. chronic
The additional cost associated with hiring one additional unit of some factor input, such as labor, is referred to as
A) marginal physical product of labor. B) marginal revenue cost. C) marginal factor cost. D) marginal revenue product.