The delay between the time a problems arises and the time policymakers decide wh
ID: 375122 • Letter: T
Question
The delay between the time a problems arises and the time policymakers decide what to do about it is an a. Inside lag b. Interest lag c. Outset lag d. Outside lag 81. Lags occur for all of the reasons listed below except a. The collection of data is difficult and requires considerable time b. The Fed only meets periodically c. Aggregate supply is fixed in the long run d. Aggregated supply and demand must adjust to changes over time 82. Fine-tuning the U.S. economy is very difficult due to all of the following reasons EXCEPT a. Forecasting errors in predicting economic data b. Unexpected national and world events c. A stable executive office d. Conflicts between short-run actions and long-run effects 83.A decrease in tax rates today that causes drastic cuts in funding in education and higher tuition for students in later years is an example of a. Time inconsistency b. Inside lapse c. Forecasting error d. Fine-tuning Politics, elections, and policymaker's goals may contribute to a. Procyclical policies b. Long-run planning c. Long-run economics d. All of the above 85. In recent years, policymakers have a. Increased the use of fine-tuning actions b. Decreased the use of fine-tuning actions c. Utilized fiscal policy far more than monetary policy d. Utilized monetary policy far more than fiscal policy 86. The rules for monetary and fiscal policy specifying the actions that will be taken in response to economic developments are called a. Policy guidelines b. Policy rules c. Federal guidelines d. Federal rules 87. Stable prices, economic growth, and limited inflation are all examples of a. Policy goals b. Operating targets c. Intermediate targets d. Policy instrumentsExplanation / Answer
Inside lag
Aggregate supply is fixed in the long run
A stable executive office
Time inconsistancy
All of the above.
Increase the use of fine tuning actions.
Federal guidelines.
policy goals
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