The recognition lag of stabilization policy represents
A. the time that it takes for policy makers to recognize a change in the economy.
B. the time that it takes for the economy to adjust to the new conditions after a new policy is introduced.
C. the time needed for the Federal Reserve Board to meet.
D. the time that is necessary to put the desired policy into effect.
Answer: A
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If the Fed increases the quantity of money, then
A) aggregate demand increases and the AD curve shifts rightward. B) the quantity of real GDP demanded decreases and there is a movement up along the AD curve. C) both the aggregate demand curve and the aggregate supply curve shift leftward. D) aggregate demand decreases and the AD curve shifts leftward. E) the quantity of real GDP demanded increases and there is a movement down along the AD curve.
At a given output level, a temporary reduction in government purchases will
A) increase desired saving, causing the IS curve to shift down and to the left. B) increase desired saving, causing the IS curve to shift up and to the right. C) decrease desired saving, causing the IS curve to shift down and to the left. D) decrease desired saving, causing the IS curve to shift up and to the right.
Compare and contrast cardinal utility and ordinal utility. Which concept is sufficient for ranking consumers' preferences? Why?
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. Water quality policy recognizes two major categories of water resources -- surface water and groundwater. 2. An aquifer refers to any water body exposed to the atmosphere. 3. Groundwater and surface waters are about equal in volume. 4. The interdependence of all water resources is explained by the hydrologic cycle. 5. Environmental threats to surface water have no connection to groundwater contamination.