What are some of the practical problems that limit the effective use of discretionary monetary and...
What are some of the practical problems that limit the effective use of discretionary monetary and fiscal policy as stabilization tools? Check all that apply.
The impact lag
The recognition lag
The administrative lag
The inflation lag
Homework Answers
Answer
Option 1,2,3
The impact lag
The recognition lag
The administrative lag
The impact lag
The time to stabilize the shock in the economy take time because the impact of a policy is late.
The recognition lag
The time to recognize it. It is a time to find out there is a shock in the economy
The administrative lag
It is a time to recognize, make a policy to implement it takes time and that reduce the importance of it.
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What are some of the practical problems that limit the effective
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Here is some data on the economy of a certain country. Use this
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M1 Money Supply: $190 Billion
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