Multiple Choice
Which of the following is one reason that long time lags hamper the effectiveness of economic policy?
A) because the longer unemployment lasts, the more intense inflation becomes
B) because 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 situation even worse
C) because if inflation is allowed to continue for too long, it becomes immune to policy interference
D) because if unemployment is allowed to continue for too long, it becomes immune to policy interference
Correct Answer:

Verified
Correct Answer:
Verified
Q16: Exhibit 15-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 15-1
Q17: Suppose the natural unemployment rate CANNOT easily
Q18: Exhibit 15-3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 15-3
Q19: Exhibit 15-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 15-1
Q20: According to the active policy position, how
Q22: Why does a passive approach to economic
Q23: Suppose we observe an economy adjusting to
Q24: Suppose the natural unemployment rate CANNOT easily
Q25: Which of the following statements is NOT
Q26: Why does the rational expectations school advocate