A Response Lag Is

question 241

Multiple Choice

A response lag is

• A) the time it takes to see if that there has been a shock to the economy.
• B) the time it takes the Fed or Congress to change economic policy.
• C) the time it takes for a new economic policy to affect behavior in the economy.
• D) none of the above

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Definitions:

Elastic

Describes a situation where the quantity demanded or supplied changes significantly when the price changes.

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Profit Maximizes

The process or strategy of adjusting production and operations to achieve the highest possible profit.