A response lag is
A. the time it takes to see if that there has been a shock to the economy.
B. the time it takes the Fed or Congress to change economic policy.
C. the time it takes for a new economic policy to affect behavior in the economy.
D. none of the above.
Answer: C
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The principle of “comparable worth” asserts that people with comparable, if not identical, skills and responsibilities should receive the same pay. If this principle were to become law, it would tend to
A. reduce the problem of the “cost disease of services.” B. exacerbate the problem of the “cost disease” of the service sector. C. be irrelevant to the “cost disease” problem. D. eliminate the problem of externalities.
U.S. exports are included in aggregate demand because the exports contribute to the total ______.
a. spending on goods and services by U.S. consumers b. U.S. demand for foreign goods and services c. U.S. sales of goods and services by foreign producers d. demand for U.S. goods and services
The 'Invisible Hand'
What will be an ideal response?
A wealthy executive is holding money, waiting for a good time to invest in the stock market. This action would be an example of the:
A. Transactions demand for money B. Asset demand for money C. Creation of fiat money D. Use of money as a medium of exchange