Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If policy makers decide on a policy at point t3 but it does not affect the economy until period t6, then the policy choice is likely to be
A. optimal.
B. inappropriate.
C. ineffective.
D. none of the above.
Answer: B
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In the coordination failure model, increasing returns to scale are best explained by strategic
A) mismanagement. B) complementarities. C) substitutabilities. D) collusion.
In dollar value, the nominal GDP in the United States is
a. between 5 and 6 billion. b. between 8 and 9 billion. c. between 8 and 10 trillion. d. between 13 and 15 trillion.
The IMF mostly receives its funds from:
a. the subscription fees paid by the member nations. b. selling of bonds. c. the loans given by the World Bank. d. the central banks of the major industrialized nations. e. the gold reserves available with the Fed.
A movement up the Phillips curve will cause
A. A decrease in both unemployment and inflation. B. A trade-off between unemployment and inflation. C. An outcome known as stagflation. D. An increase in both unemployment and inflation.