Which of the following statements about fiscal policy and time lags is most likely correct?
a. The time lag for fiscal policy is typically longer than the time lag for monetary policy.
b. The time lag for fiscal policy is typically shorter than the time lag for monetary policy.
c. The time lag for fiscal policy is typically about the same as the time lag for monetary policy.
d. The time lag for fiscal policy is typically exactly the same as the time lag for monetary policy.
a. The time lag for fiscal policy is typically longer than the time lag for monetary policy.
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The cyclically adjusted budget deficit or surplus measures what the deficit or surplus would be if the economy was
A) in the recession phase of the business cycle. B) in the expansion phase of the business cycle. C) at potential GDP. D) no longer in a business cycle.
The fact that the Social Security tax is shared evenly between employers and employees _____
a. has nothing to do with who bears the actual burden of the tax b. has everything to do with who bears the actual burden of the tax c. is important to who bears the actual burden of the tax if the supply curve is perfectly inelastic d. is important to who bears the actual burden of the tax if the demand curve is perfectly inelastic
A country can attempt to increase its capital stock by
a. shifting resources away from capital goods toward consumer goods b. shifting resources away from human capital goods toward physical capital goods c. shifting resources away from consumer goods toward capital goods d. shifting resources away from physical capital goods toward human capital goods e. shifting resources away from consuming tomorrow toward consuming today
If a Central Bank wishes to reduce the supply of money, it should:
(a) Reduce the reserve requirement. (b) Raise the reserve requirement. (c) Instruct banks to reduce their savings rates. (d) Do all of the above.