Q. Elucidate causes lags in effect of monetary and fiscal policy on aggregate demand? what are the implications of these lags for the debate over active versus passive policy?
Q. "Firm A is the dominant firm in a market where industry demand is given by QD= 48 - 4P. There are four "follower" firms, each with long run marginal cost given by MC= 6 + QF. Firm A's long run marginal cost is 6."