The Existence of Lags Prevents the Instantaneous Adjustment of the Economy

question 20

Multiple Choice

The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand,thereby strengthening the case for ________ policy.

• A)supply-side
• B)nondiscretionary
• C)discretionary
• D)demand-management

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Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically referred to as the four Ps: product, price, place, and promotion.

NIH Barriers

Stands for "Not Invented Here" barriers, a term referring to the reluctance or inability of a company to accept or adopt innovations or solutions developed outside its own boundaries.

Organizational Inertias

The tendency of an organization to continue on its current trajectory despite changes in the external environment, often due to resistance to change.

Open Innovation

A business model that encourages collaboration with individuals or companies outside an organization to jointly develop new products or services.