The time it takes to formulate a policy is known as:

A. fiscal policy.
B. crowding out.
C. inside lags.
D. outside lags.

Answer: C

Economics

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Whatever serves as a medium of exchange is: a. money

b. money, as long as it is also the best such medium of exchange available. c. money, as long as it is not also a commodity. d. money, as long as it is not also legal tender. e. not money, unless it continues to be backed by its issuing institution.

Economics

Refer to the diagram, where T is tax revenues and G is government expenditures. All figures are in billions of dollars. If the full-employment GDP is $400 billion while the actual GDP is $200 billion, the actual budget deficit is:



A.  $200 billion.
B.  $20 billion.
C.  $40 billion.
D.  $60 billion.

Economics