Even When the Obama Administration Succeeds with Its Effort to Gain

question 93

Multiple Choice

Even when the Obama administration succeeds with its effort to gain Congressional approval for its stimulus proposals, it will still take time for these policies to actually work. The time it takes for these policies to work is known as

• A) inside lags.
• B) outside lags.
• C) automatic stabilization.
• D) crowding out.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Shifts

Refers to changes in the position of demand or supply curves in economic models, often due to changes in external factors such as technology, preferences, or policy.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at various prices.

Price of Substitutes

The cost of alternative goods or services that consumers can purchase instead of the original item, influencing consumer choices and demand.