Refer to the information. The operational lag of fiscal policy is reflected in event(s):
Answer the question on the basis of the following sequence of events involving fiscal policy:
(1) The composite index of leading indicators turns downward for three consecutive months,
suggesting the possibility of a recession. (2) Economists reach agreement that the economy is
moving into a recession. (3) A tax cut is proposed in Congress. (4) The tax cut is passed by
Congress and signed by the president. (5) Consumption spending begins to rise, aggregate
demand increases, and the economy begins to recover.
A. 1 and 2.
B. 2 and 3.
C. 3 and 4.
D. 5.
D. 5.
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Which of the following exchanges handles numerous technology companies including Intel and Microsoft?
a. NASDAQ b. NYSE c. AMEX d. None of the above handle technology stocks.
The time required for Congress to pass bills out of committee, vote on bills, and the President to sign the new law to effectively deal with a recession is called the
A. political lag. B. education lag. C. recognition lag. D. decision lag.