The time needed to introduce a change in monetary or fiscal policy is called an ________ ________
a. Recognition Lag
b. Decision-Making Lag
c. Implementation Lag
d. Effectiveness Lag
c
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A special license is required to operate a taxi in many cities. The number of licenses is restricted. More drivers want licenses than are issued. This describes a non-perfectly competitive market because
A) taxi services are very different. B) firms cannot freely enter and exit the market. C) transaction costs are high. D) the government generates revenue from the licenses.
Which of the following is an example of a negative externality? a. A Japanese company exports cars to the U.S., which causes American workers to lose their jobs
b. An employee of a chemical company spills acid on his arm, causing severe damage. c. John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary. d. Sally buys coffee at McDonald's, spills some and burns her hand. e. Jack attempts to fix his roof, falls off, and breaks his leg.
Social Security is an income support program, designed primarily to maintain the living standards of the poor
a. True b. False Indicate whether the statement is true or false
If the velocity of money is constant, then a 2% increase in the money supply
A) must be the result of a 2% increase in the price level. B) would change nominal GDP by a smaller percentage. C) would change nominal GDP by an equal percentage. D) would change nominal GDP by a larger percentage.