Suppose a law was passed to authorite more spending on roads, but several months later the first dollar had not been spent. This delay is an example of an recognition lag political lag. administration lag operational lag. (17) What is the goal of automatic stabilizers? To reduce the volatility in the currency market To flatten the peaks and valleys in the business cycle To enhance the multiplier effect by increasing the effectiveness of fiscal policy To minimize unemployment (15) GDP 54 trillion and the money supply is 31 trillion, what can be concluded! Velocity Velocity - 1/4 Prices 4 Prices 1/4 Most mis believe that in the short run, an increase in the money supply will Tale prices by the same proportional amoon increase output decrease output decrease vclocity (20) This prodepicts change in the macroeconomy and by the Federal Reserve lowering the required reserve ratio. After the action, what is the short run price level! RAS SA P: MacBook Pro % @ s 2 & 7 : : 3 4 5 6