The recognition time lag recognizes that it takes time
A) to collect information about the state of the economy.
B) for any change in policy to take effect and for people to recognize that the policies are effective.
C) to get politicians to agree on the best policy to enact.
D) for the politicians to enact the policy once the need for change has been recognized.
Question 2
One of the necessary conditions for the classical model to be TRUE is that
A) wages were flexible and prices are fixed. B) wages and prices are fully flexible.
C) wages and prices are partly flexible. D) wages and prices will not change.
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