The Transmission Lag Is the Time Between

question 59

Multiple Choice

The transmission lag is the time between

• A) the implementation of a policy and when the impact of the policy is felt.
• B) the enactment of a policy (getting a policy passed by Congress with the president's approval)and the implementation of the policy (putting a policy into effect).
• C) realizing a policy is needed and enacting the policy.
• D) the occurrence of an event and policymakers realizing the event has occurred.

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Definitions:

Diminishing Marginal Returns

A principle stating that as more of a variable input is added to a fixed input, the additional output from each new unit of input will eventually decrease.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.

Sergei's Profit

A hypothetical measure of earnings named for an individual, illustrating the net gain after subtracting expenses from revenue.

Market Price

The ongoing transaction price for purchasing or offloading an asset or service.