Long time lags hamper the effectiveness of economic policy because:
a. people don't want to wait for economic recovery
b. the longer unemployment lasts, the more intense inflation becomes.
c. by the time the impact of a policy is felt, a new problem may have come along that requires a different policy, which may make the economic situation even worse.
d. if inflation is allowed to continue for too long, it becomes immune to policy interference.
e. if unemployment is allowed to continue for too long, it becomes immune to policy interference.
c
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For barter to occur there must be
A) two people willing to pay with credit. B) a double coincidence of wants for each good to be exchanged. C) one person who pays cash. D) hyperinflation.
Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes, and the supply curve of shoes ________
A) does not change; does not shift B) decreases; shifts rightward C) increases; shifts rightward D) increases; shifts leftward E) decreases; shifts leftward