Time lags,crowding-out,and savings shifts are all

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These issues are all challenges that arise when implementing activist fiscal policy, which involves using government spending and taxation to stabilize the economy. Time lags refer to the delay between the implementation of a fiscal policy change and its effect on the economy. Crowding-out occurs when government spending crowds out private investment, potentially reducing the overall impact of fiscal policy. Savings shifts refer to changes in consumer behavior in response to fiscal policy, such as increased saving in response to tax cuts. Therefore, these issues are closely related to the implementation of fiscal policy rather than automatic stabilizers or countercyclical fiscal policy.

Time Lags,crowding-Out,and Savings Shifts Are All