Which of the Following Is One Reason That Long Time

question 21

Multiple Choice

Which of the following is one reason that long time lags hamper the effectiveness of economic policy?  

• A) because the longer unemployment lasts, the more intense inflation becomes 
• B) because by the time the impact of a policy is felt, a new problem may have come along that requires a different policy, which may make the situation even worse 
• C) because if inflation is allowed to continue for too long, it becomes immune to policy interference 
• D) because if unemployment is allowed to continue for too long, it becomes immune to policy interference

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Definitions:

Vertical Mergers

Mergers between companies at different stages of production within the same industry, aimed at increasing efficiency or control over the supply chain.

Interlocking Directorates

A situation where the members of a board of directors serve on the boards of multiple corporations, potentially leading to conflicts of interest.

Price-fixing

A form of market manipulation where competitors collude to set prices at a certain level, rather than allowing them to be determined naturally by market forces, which is illegal in many jurisdictions.

Tying Contracts

Agreements where a seller conditions the sale of one product (the tying product) on the buyer's agreement to purchase a separate product (the tied product).