In January 2008, the unemployment rate was only 4.9 percent and real GDP was growing. But President Bush "acknowledged that Americans were 'anxious about the economy.' As a result, it was reported that "...the Bush administration and Congressional leaders, increasingly concerned about a possible recession, are moving closer to agreeing that an economic stimulus package is needed soon." In order for the package to be approved, the leaders in Washington implied that "... t might be able to put aside longstanding partisan differences ."
HYPERLINK "http://www.nytimes.com/" www.nytimes.com, 1/12/20
Which of the following lags are government officials trying to avoid?

Question

Quizplus · Accepted Answer

Government officials are trying to avoid all of the lags - the impact lag (delay between policy implementation and its effects on the economy), the recognition lag (the delay in recognizing a problem in the economy), and the law-making lag (the delay in passing legislation to address the economic problem). They are moving closer to agreeing on an economic stimulus package to address concerns about a possible recession, implying a willingness to put aside partisan differences.

In January 2008, the Unemployment Rate Was Only 4