Refer to the information provided in Figure 15.1 below to answer the questions that follow.
Figure 15.1
-Refer to Figure 15.1.If policy makers decide at time t₅that the economy is expanding too fast,but the policy changes start affecting the economy at t₇,then the policy will be

Question

Refer to the information provided in Figure 15.1 below to answer the questions that follow.

Figure 15.1
-Refer to Figure 15.1.If policy makers decide at time t₅that the economy is expanding too fast,but the policy changes start affecting the economy at t₇,then the policy will be

Quizplus · Accepted Answer

The policy will be inappropriate because there is a time lag between the decision and its effect, meaning the economy might have already adjusted by the time the policy takes effect.

Refer to the Information Provided in Figure 15