Policy Time Lags Can Cause Difficulties for Policy Makers Because

question 49

Multiple Choice

Policy time lags can cause difficulties for policy makers because:

• A) the size of the multiplier cannot be known with certainty
• B) it is difficult for policy makers to agree which policy is best at a point in time
• C) by the time the policies take effect the nature of the economic problem may have changed
• D) by the time the policies take effect the economy will have self- corrected

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Definitions:

Departmental Income Statements

Financial statements that show the operating results of each department within a company, highlighting revenues and expenses.

Profit Center

A branch or division of a business that is responsible for generating its own revenue and profit.

Cost Center

A department within an organization that does not directly add to profit but still incurs costs.

Indirect Expenses

Expenses that cannot be traced directly to one department.