The recognition lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy.
B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy.
C) the time it takes to pass legislation to implement a particular policy.
D) the time it takes for policy makers to change policy instruments once they have decided on the new policy.
E) the time it takes for the policy actually to have an impact on the economy.
B
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When faced with a continual excess demand for foreign exchange, which of the following options can the government choose to eliminate the disequilibrium situation?
a. increase the peg or devalue b. engage in fiscal policy and raise the country's income level c. engage in monetary policy and lower interest rates d. increase the inflation rate e. decrease the peg or revalue
Critics of Keynesian theory object to its apparent endorsement of government growth.
Answer the following statement true (T) or false (F)
An increase in aggregate supply causes:
a. real domestic output to decrease and the price level to rise b. Both real domestic output and the price level to decrease c. Real domestic output to increase and the price level to become smaller d. Both real domestic output and the price level to become greater
What is the meaning of the incidence of a tax? Give an example using a landlord and tenants
What will be an ideal response?