The recognition time lag recognizes that it takes time
A. for the politicians to enact the policy once the need for change has been recognized.
B. to get politicians to agree on the best policy to enact.
C. for any change in policy to take effect and for people to recognize that the policies are effective.
D. to collect information about the state of the economy.
Answer: D
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Factories and machines are examples of:
A. capital goods. B. consumption goods. C. non-market goods. D. value-added goods.
Government spending in the United States has grown over time and now accounts for more than forty percent of United States national income. Does this mean that government has been consistently running a budget deficit?
What will be an ideal response?
Policies which promote improvements in health for a society are central to:
A. economic development. B. rising health care costs. C. government deficit spending. D. government monetary policy.
If the Fed's monetary policy causes a substantial decrease in interest rates, what is the most likely impact on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to interest rates.