In January 2008, the unemployment rate was only 4.9 percent and real GDP was growing. But President Bush ʺacknowledged that Americans were ʹanxious about the economy.ʹ As a result, it was reported that ʺ...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.ʺ In order for the package to be approved, the leaders in Washington implied that ʺ... they might be able to put aside longstanding partisan differences .ʺ
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 law-making lag, the impact lag, and the recognition lag, by agreeing to an economic stimulus package in response to public anxiety about the economy.

In January 2008, the Unemployment Rate Was Only 4