Assume it takes the Fed 4 months to understand that a demand shock has occurred in the economy, and another 1 month to adjust policy to the shock
The initial 4 month time period refers to the ________, and the following one month time period refers to the ________. A) impact lag; implementation lag
B) recognition lag; implementation lag
C) implementation lag; policy lag
D) policy lag; impact lag
B
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When an individual who has not been working but has been looking for work decides to terminate the search process, the official unemployment rate
A) will fall. B) will rise. C) will remain unchanged. D) may fall or rise depending on whether or not the individual resumes his education.
Suppose you compete in a Cournot oligopoly market consisting of six firms. The equilibrium market price and quantity are $5 and 10 units, respectively. The marginal cost for each firm is $3. Based on this information, we know the price elasticity of the market demand is:
A. 0.167. B. ?2.4. C. ?0.417. D. There is insufficient information to answer this question.