Refer to the Information Provided in Figure 14

question 252

Multiple Choice

Refer to the information provided in Figure 14.1 below to answer the questions that follow. Figure 14.1
-Refer to Figure 14.1. If the economy is actually at Point G but policy makers think that it is still at Point E, this is an example of

• A) economic policies ineffectiveness.
• B) response lag.
• C) implementation lag.
• D) recognition lag.

---

Definitions:

Market

A market is any arrangement that allows buyers and sellers to exchange goods, services, and information. It determines the price and allocation of resources through the interactions of supply and demand.

Normal Good

a good for which demand increases when consumer income rises, and falls when consumer income decreases.

Equilibrium Price

The market price at which the quantity demanded of a good equals the quantity supplied, leading to market balance.

Video Game Discs

Physical media used for storing video game content for use on consoles and computers.