Refer to the information provided in Figure 29.1 below to answer the question(s) that follow. Figure 29.1
-Refer to Figure 29.1. If policy makers decide on a policy at Point t₄ but it does not affect the economy until period t₇, then the policy choice is likely to be

Question

Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.

Figure 29.1
-Refer to Figure 29.1. If policy makers decide on a policy at Point t₄ but it does not affect the economy until period t₇, then the policy choice is likely to be

Quizplus · Accepted Answer

If policy makers decide on a policy at Point t₄ but it does not affect the economy until period t₇, the policy will be destabilizing. This is because any policy action that takes too long to implement may have unintended consequences or become irrelevant by the time it is implemented. Therefore, it can lead to economic instability.

Refer to the Information Provided in Figure 29