Estimates from Large Macroeconometric Models of the U

question 19

Multiple Choice

Estimates from large macroeconometric models of the U.S. economy suggests that it takes over ________ for monetary policy to affect output and over ________ for monetary policy to affect the inflation rate.

• A)1 year;2 years
• B)2 years;1 year
• C)1 year;6 months
• D)6 months;1 year

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Definitions:

Variable

A characteristic or quantity that can vary or change within a study, research, or mathematical model.

Conditions

General states or situations in which something occurs or has an effect.

Independent Variable

In studies involving experimentation and statistics, it's the variable that is altered or controlled to see its impact on a dependent variable.

Dependent Variable

In an experimental setting, the variable that is tested and measured, often considered the outcome or effect that is influenced by another variable.