Questions: A long inside lag is considered more of a problem for U.S. policy, whereas a long outside lag is considered more of a problem for U.S. policy. active; passive fiscal; monetary monetary; fiscal passive; active

A long inside lag is considered more of a problem for U.S. policy, whereas a long outside lag is considered more of a problem for U.S. policy.
active; passive
fiscal; monetary
monetary; fiscal
passive; active
Transcript text: A long inside lag is considered more of a problem for U.S. $\qquad$ policy, whereas a long outside lag is considered more of a problem for U.S. $\qquad$ policy. active; passive fiscal; monetary monetary; fiscal passive; active
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Solution

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The answer is the second one (B): fiscal; monetary.

Explanation for each option:

A. Active; passive - This option does not relate to the concepts of inside and outside lags in economic policy.

B. Fiscal; monetary - This is the correct answer. A long inside lag is more of a problem for fiscal policy because it takes time for government decisions to be made and implemented (e.g., passing legislation). A long outside lag is more of a problem for monetary policy because, once implemented, it takes time for changes in interest rates to affect the economy.

C. Monetary; fiscal - This is incorrect because monetary policy typically has a shorter inside lag but a longer outside lag, while fiscal policy has a longer inside lag.

D. Passive; active - Similar to option A, this does not directly relate to the concepts of inside and outside lags in economic policy.

In summary, the correct answer is that a long inside lag is more of a problem for U.S. fiscal policy, whereas a long outside lag is more of a problem for U.S. monetary policy.

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