One timing problem in using fiscal policy to counter a recession is the "implementation lag" that occurs between the
A. start of the recession and the time it takes to recognize that the recession has started.
B. time fiscal action is taken and the time that the action has its effect on the economy.
C. time the need for the fiscal action is recognized and the time that the action is taken.
D. start of a predicted recession and the actual start of the recession.
Answer: B
You might also like to view...
Use the figure below to answer the following question.
The total benefit of the second unit of X is ________.
A. 11 B. 4 C. 5 D. 17
Economic agents who borrow funds are known as:
A) receivers. B) debtors. C) investors. D) creditors.
Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Technological change that made it easier to produce in a "cleaner" fashion would cause
A) curve (4 ) to shift out, increasing the optimal amount of pollution abatement. B) curve (3 ) to shift up, raising the marginal benefits and costs and reducing the amount of pollution abatement. C) curve (2 ) to shift out, increasing the optimal amount of pollution abatement. D) curve (1 ) to shift out, increasing the optimal amount of pollution abatement.
"Value added" is defined as:
a. the price of the product multiplied by the quantity produced. b. total sales revenue divided by the quantity produced. c. total sales revenue minus sales taxes. d. the value of total product minus raw materials costs.