Multiplier uncertainty is a major handicap for policy makers since it means that they don't always know
A) the potential impact of a policy measure on the economy
B) whether a disturbance is temporary or permanent
C) from which sector of the economy a disturbance arises
D) how long it will take to formulate and implement a policy change
E) how long it will take for a policy to affect the economy
Correct Answer:
Verified
Q16: The inside lag is defined as the
Q17: Most economists believe that
A)the expectations of firms
Q18: The outside lag is defined as the
Q19: The best policy response to a disturbance
Q20: If an economic disturbance is known to
Q22: Active stabilization policy may actually destabilize the
Q23: If we have more information about the
Q24: Policy makers should use a variety of
Q25: Multiplier uncertainty is defined as uncertainty about
A)the
Q26: Economists are more likely to be in
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