Which of the following illustrates the effectiveness lag?
A) Policymakers believe an economic downturn has occurred, but they decide not to take action until they are sure.
B) Policymakers are in the process of proposing policy measures to deal with the current economic slowdown.
C) Policymakers first learn of the recession when it is five months old.
D) Policymakers implement policy X, but it will be a few months before it starts working.
E) Policymakers agree to policy X, but it will be at least two months before the policy is implemented.
D
You might also like to view...
According to the rule of 70, if a person's saving doubles in 10 years, what interest rate were they earning?
a. 3.5 b. 7 c. 14 d. None of the above is correct.
The total market value of final goods and services that could be produced in a given time period at full employment is called (2)
What will be an ideal response?
In the aftermath of the Great Recession
A. deflation concerns have subsided in the U.S, Japan, and Europe. B. the U.S., Japan, and Europe are all experiencing deflation. C. the deflation of the early 2000s has been reversed. D. policymakers in the U.S., Japan, and Europe are working hard to avoid deflation.
Draw in a new demand curve, D1, on the graph, showing a decrease in demand What happens to price and quantity?
What will be an ideal response?