Why do long lags make discretionary policy less effective?
What will be an ideal response?
By the time the impact of a policy is felt, the problem may have been corrected by market forces.
You might also like to view...
The current monetary system in the United States is
A) a mix of fiat money and exchange using transactions deposits at banks. B) a commodity money system. C) a gold standard. D) a commodity-backed fiat money system.
For a perfectly competitive firm, average revenue is: a. equal to marginal cost at all levels of output
b. equal to marginal revenue at all levels of output. c. equal to price at all levels of output. d. characterized by both (b) and (c).
Name and describe the two key components of a balance of trade.
What will be an ideal response?
When the value of exports exceeds the value of imports then
A) changes in productivity will occur. B) international trade is in balance. C) the country is running a trade deficit. D) the country is running a trade surplus.