Why will it difficult for the Fed to use monetary policy to direct the economy back to full employment and price stability from the recession of 2008-2009?
What will be an ideal response?
The time lags between changes in monetary policy and when the changes exert an impact on output and prices are long and variable.
Economics
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The nonactivists who opposed the recent fiscal stimulus package argue that
A) fiscal stimulus would take too long to work because of long implementation lags. B) fiscal stimulus might kick in after the economy had already recovered. C) fiscal stimulus could lead to increased volatility in inflation and economic activity. D) all of the above. E) none of the above.
Economics
A firm producing a relatively large quantity before any rivals have entered the market, is an example of first-mover advantage
What will be an ideal response?
Economics