Assume It Takes the Bank of Canada Four Months to Understand

question 19

Multiple Choice

Assume it takes the Bank of Canada four months to understand that a demand shock has occurred in the economy,and another one month to adjust policy to the shock.The initial four-month time period refers to the ________,and the following one-month time period refers to the ________.

• A) impact lag; implementation lag
• B) recognition lag; implementation lag
• C) implementation lag; policy lag
• D) policy lag; impact lag

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Definitions:

Full-time Employment

A form of employment where individuals work a standard work week, typically consisting of 35-40 hours, offering stability and benefits.

Child Care

The provision of care and education to children by individuals outside the immediate family setting, focusing on development and well-being.

Double Standard

The application of different sets of principles for similar situations, or to different people, in a way that is unfair or unethical.

Sexual Harassment

Unwanted or inappropriate sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.