The action time lag is the time period that elapses
A. between when an economic problem manifests itself and it is officially acknowledged.
B. between the recognition of an economic problem and implementing policies to solve it.
C. between implementing policies to solve an economic problem and when the results of that policy can be measured.
D. between the beginning of the budgetary process and the final budget resolution.
Answer: B
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According to the text, economists consider full employment to occur when
A) the sum of frictional unemployment and structural unemployment equals zero. B) the unemployment rate consists of only frictional and structural unemployment. C) frictional unemployment equals zero. D) everyone who wants a job has a job.
When the Fed uses contractionary policy,
A) it causes inflation. B) the price level rises higher than it would if the Fed did not pursue policy. C) it does not change the price level. D) the price level rises less than it would if the Fed did not pursue policy.
The Robinson-Patman Act of 1936 amended the: a. Sherman Act
b. Clayton Act. c. Federal Trade Commission Act. d. Wagner Act.
What determines the size of a shift in aggregate demand that results from a personal income tax cut?
A. The marginal propensity to consume B. The size and permanence of the tax cut C. The level of consumer confidence D. All of these statements affect the size of such a shift.