The Existence of Lags Prevents the Instantaneous Adjustment of the Economy

question 44

Multiple Choice

The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand,thereby strengthening the case for

• A)supply-side policy.
• B)nonactivists.
• C)activists.
• D)demand-management policy.

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Definitions:

Relative Efficiency

A measure comparing the precision of different estimators or statistical procedures under the same conditions.

Line-Angle Formula

A representation of molecular structure using lines for bonds between carbon atoms and angles to indicate changes in direction, omitting most hydrogen atoms.

Compounds

Substances formed from two or more elements that are chemically combined in fixed ratios.

Molecular Formula

A notation representing the number and type of atoms in a molecule without indicating how the atoms are bonded.