Multiple Choice
Formulating an appropriate policy response to an economic disturbance is difficult since policy makers are often unsure about
A) the timing and magnitude of the effects of a proposed policy measure
B) whether a disturbance is temporary or permanent
C) how the economy really works
D) how a proposed policy measure affects people's expectations
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q9: Generally speaking, automatic fiscal stabilizers<br>A)raise the level
Q10: Most economists believe that<br>A)the expectations of firms
Q11: If policy makers were convinced that the
Q12: Stabilization policy is affected by inside lags,
Q13: After the attack on the World Trade
Q15: The concept of dynamic inconsistency implies that
Q16: Which of these economists proposed that economic
Q17: The outside lag is defined as the
Q18: Imposing policy rules<br>A)reduces the risk that policy
Q19: If a central bank believes that an