Which is NOT an example of a transmission mechanism?
A) time bunching
B) intertemporal substitution
C) labor adjustment costs
D) irreversible employment

Question

Quizplus · Accepted Answer

Time bunching, intertemporal substitution, and labor adjustment costs are all examples of transmission mechanisms that affect how changes in policy or economic conditions impact the overall economy. Irreversible employment, however, is not a transmission mechanism but rather a characteristic of certain types of employment arrangements.

Which Is NOT an Example of a Transmission Mechanism