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The Outside Lag Is Defined as the Length of Time

Question 18

Multiple Choice

The outside lag is defined as the length of time it takes


A) to recognize whether a disturbance is permanent or temporary
B) to come up with the appropriate policy response to a disturbance
C) to account for the recognition, decision, and action lags
D) for a policy to affect the economy after its implementation
E) for the public to form expectations about a newly announced policy change

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