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chubhunter [2.5K]
3 years ago
15

Identifying time lags Advocates of active policy face several obstacles when implementing discretionary fiscal or monetary polic

y, such as identifying the economy's potential output level, the natural rate of unemployment, and the effects of a passive approach. Policymakers must also cope with a multitude of time lags that complicate the implementation of active policy. Identify the type of time lag illustrated in the following scenario:
Policymakers believe that the economy is experiencing a recession, and they have agreed on the need for expansionary monetary policy. However, some economists suggest dropping the federal funds rate by 0.25%, while others think it needs to be decreased by 0.75%.

a. Effectiveness lag
b. Recognition lag
c. Implementation lag
d. Decision-making lag
Business
1 answer:
e-lub [12.9K]3 years ago
4 0

Answer: d. Decision-making lag

Explanation:

When policy makers have identified that there is a problem that needs fixing but cannot seem to agree on the way forward, this is known as a <em>Decision - Making Lag or simply the Decision Lag.</em> It is one of the 3 specific inside Policy Lags and can be devastating due to the uncertainty of time it might take.

For instance, the economists suggesting dropping the federal funds rate by 0.25% might have the backing of one half of the Fed and the other Economists, the other half. Arguments could therefore go on for weeks before a decision is made.

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Many demographers predict that the United States will have zero population growth in the twenty-first century, in contrast to av
ANTONII [103]

Answer and Explanation:

Different things being constant, a slowdown in population growth will lead to an increase in the availability of capital per worker and output per worker.

At the steady state, output per worker will grow at the rate of g while. Thus, steady state per person output growth will be same, however total output will increase at the rate n+g.

In case of transition between steady states, during the transition phase, output per worker will grow at a rate greater than g. Overtime in the long run with a fall in population growth, total output will fall while output per worker will increase.

6 0
3 years ago
Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-lin
Anton [14]

Answer:

The Net Present Value (NPV) of this project is <u>$93,405.59</u>.

Explanation:

Note: Find attached the excel file for the calculation of the NPV of this project.

Net present value (NPV) refers to the present value of cash inflows minus the present value of cash outflows over a specified period of time.

On its own, present value (PV) refers the value that a future sum of money or stream of cash flows has now or currently given a specified rate of return. The formula for calculating the PV is given as follows:

PV = FV / (1 + r)^n

Where,

FV = Future value

r = discount rate. This is given as 10% in this question

n = Relevant period, e.g. year

The above explanation and formula together with other stated formulae in the attached excel file is used in calculating the NPV of this project.

Download xlsx
7 0
3 years ago
There is often only one provider of cable television services in each region of the country: Time Warner is in New York, Comcast
posledela

Answer:

monopolist

Explanation:

Monopolistic competition is a kind of imperfect competition in which specific person or enterprise is the only supplier of a particular commodity.

A monopolist is not very much concerned about the product as customers have no alternatives but to buy that product.

Also, he can change the price or quantity of the product as in an industry he is a single seller .

In the given question, it's given that There is often only one provider of cable television services in each region of the country: Time Warner is in New York, Comcast is in most of New England, and so forth.

So, it would have caused Comcast to become an overly large <u>monopolist</u> with too much power if it buys Time Warner.

7 0
2 years ago
Conduct the necessary research to develop the policy using the library and the Internet. Some things that you need to keep in mi
11111nata11111 [884]

Answer:

Not using service if part of law is violated.

Cease of account in case of rules break attempt.

Limit the access according to the designation of employees.

Explanation:

Acceptable use policy is the document which lists the terms and conditions which needs to be agreed to access the corporate network. The AUP included set of rules which must be agreed in order to access the network by user. The documents can includes rules regarding the administrative controls, operational controls and technical controls.

8 0
3 years ago
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset to
xz_007 [3.2K]

Answer: $8,400

Explanation:

Tax liability for a year is computed on the nominal capital gain as of that year not the inflation-adjusted gain. As such, should the asset be sold today, the capital gains tax of 28% will be computed on the capital gain of $30,000 in the following manner;

= 28% * 30,000

= $8,400

5 0
3 years ago
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