The "effectiveness lag" in monetary policy is the amount of time it takes
A) to collect the data to determine if a policy change is required.
B) for monetary policy to have an impact on inflation and unemployment.
C) for monetary policy to affect the money supply.
D) to collect the data to determine what effect monetary policy has had on the economy.
B
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Capital accumulation definitely
A) has no impact on the production possibilities frontier. B) shifts the production possibilities frontier inward. C) makes the production possibilities frontier steeper. D) shifts the production possibilities frontier outward.
The labor supply curve represents: a. the relationship between the wage rate and labor productivity
b. the tradeoff between labor and leisure. c. the relationship between the wage rate and the quantity supplied of labor. d. the tradeoff between labor and capital as alternative factors of production.
Which of the following is NOT a characteristic of a perfectly competitive market?
A. It is difficult for a firm to enter or leave the market. B. The products sold by the firms in the market are homogeneous. C. Each firm is a price taker. D. There are many buyers and sellers in the market.
Answer the following questions true (T) or false (F)
1. In the short run, a firm might choose to produce rather than shut down even if its market price is less than its average total cost of production. 2. If a firm's total variable cost exceeds its total revenue, the firm should stop production by shutting down temporarily. 3. The short-run supply curve for a perfectly competitive firm is that part of the firm's marginal cost curve that lies above the minimum point of its average variable cost curve.