Based on the record of past business cycles as well as Fed behavior, we can estimate that for expansionary monetary policy the overall lag is approximately
A) eighteen months, about half of which is the effectiveness lag.
B) twenty months, slightly more than three-quarters of which is the effectiveness lag.
C) ten months, with less than half due to the effectiveness lag.
D) nine months, with the effectiveness lag responsible for about six months.
B
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Structural unemployment may result from all of the following factors EXCEPT
A) improved elementary and secondary education. B) union wage contracts. C) government-imposed licensing arrangements that restrict entry into certain professions. D) welfare and unemployment benefits.
Which of the following is NOT a reason social returns might be greater than private returns?
A) Excess competition between firms B) Knowledge spillovers C) Spillovers from research and development D) Capital market imperfections
As opposed to earlier crises, in the economic crisis of 2008-2009, the initial inability to pay came from
a. lending institutions. b. firms and individuals. c. states. d. the U.S. federal government.
Refer to the given data. If the economy was opened to free trade and the world price of $1 prevailed, the price and quantity sold of this product would be:
Answer the question on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.
A. $1 and 1 unit.
B. $1 and 16 units.
C. $3 and 7 units.
D. $2 and 11 units.