Question : 21) In general, monetary policy has a longer ________ lag : 1381218

 

21) In general, monetary policy has a longer ________ lag than fiscal policy but shorter ________ lag.

A) recognition; response

B) implementation; recognition

C) implementation; response

D) response; implementation

 

22) Fiscal policy and monetary policy have a similar ________ time lag.

A) implementation

B) structural

C) recognition

D) response

 

Refer to the information provided in Figure 15.2 below to answer the questions that follow.

 

 

Figure 15.2

 

23) Refer to Figure 15.2. If the economy is currently at Point B and policy makers implement a policy which shifts the aggregate demand curve to AD1, the time the economy needs to make the adjustment is known as the

A) implementation lag.

B) recognition lag.

C) response lag.

D) frictional lag.

24) Refer to Figure 15.2. If economic policy causes aggregate demand curve shifts from AD2 to AD1, then

A) output decreases to Y0 and the price level decreases to P0.

B) output decreases to less than Y1.

C) the price level decreases lower than P0 and output decreases to Y0.

D) none of the above

 

25) Refer to Figure 15.2. If the economy is currently at Point B and policy makers implement a policy which decreases the aggregate demand curve to AD1,

A) the price level will rise.

B) the price level will fall.

C) GDP will rise.

D) the inflation rate will rise.

 

26) The implementation lag for fiscal policy tends to be much longer than for monetary policy because fiscal policy requires

A) changes in required reserves.

B) changes in open-market operations.

C) changes in congressional-approved spending and tax programs.

D) changes in exports and imports.

 

27) The ________ lag for monetary policy tends to be much shorter than for fiscal policy because only monetary policy requires rather immediate changes in open market operations.

A) recognition

B) implementation

C) response

D) reorganization

28) The implementation lag for monetary policy tends to be much shorter than for fiscal policy for all of the following reasons EXCEPT

A) fiscal policy changes requires both houses of Congress and the President to act.

B) monetary changes only require the Fed to act.

C) fiscal policy usually requires committee hearings in both houses of Congress.

D) fiscal policy changes only require the Fed to act.

 

29) During periods of slow growth, the Federal Reserve will likely

A) increase the money supply to increase interest rates.

B) increase the money supply to decrease interest rates.

C) decrease the money supply to increase interest rates.

D) decrease the money supply to decrease interest rates.

 

30) During periods of high growth and inflationary pressures, the Federal Reserve will likely

A) decrease the money supply to increase interest rates.

B) increase the money supply to decrease interest rates.

C) increase the money supply to increase interest rates.

D) decrease the money supply to decrease interest rates.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more