Define the three lags discussed in monetary policy

Reference no: EM1370366

1. If the economy is operating below its potential output, what kind of gap exists? What kinds of fiscal or monetary policies might you use to close this gap? Can you think of any objection to the use of such policies?

2. Define and explain the three lags discussed in monetary policy. For each type identify a problem caused by the lag

Reference no: EM1370366

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