Recognition lags in fiscal policy stem largely from
A) the fact that it takes time before a fiscal policy, such as a change in government purchases or a change in taxes, is agreed to and put into effect.
B) the fact that it takes time for a policy action to have its full effect on aggregate demand.
C) the difficulty of collecting economic data in a timely and accurate fashion.
D) households and businesses may not respond to fiscal policy to the extent that policy makers had hoped, for example, they may not be as responsive to a tax cut .
Answer: C) the difficulty of collecting economic data in a timely and accurate fashion.
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If a substitute good is easy to find, then demand for a good is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) Substitutes don't have any effect on elasticity.
The long run is a period long enough so that one of the firm’s commitments ends.
Answer the following statement true (T) or false (F)
Tom obtains a car loan from Old Town Bank.
A. The car loan is Tom's asset and the bank's liability. B. The car loan is Tom's asset, but the liability belongs to the bank's depositors. C. The car loan is Tom's liability and a liability of the bank until Tom pays it off. D. The car loan is Tom's liability and an asset for Old Town Bank.
A horizontal merger involves
A) the joining of two firms at different stages of the production process. B) the separation of management from ownership. C) the joining of two firms selling similar products. D) the exchange of debt for stock.