The time necessary for Congress to propose and pass a fiscal policy plan is called the:
A) legislative lag.
B) recognition lag.
C) implementation lag.
D) effectiveness lag.

Question

Quizplus · Accepted Answer

The legislative lag refers to the time necessary for Congress to propose and pass a fiscal policy plan, which includes the time it takes to draft the proposal, debate it, and then finally pass it. Thus, option A is the correct answer. The recognition lag refers to the time it takes for policymakers to recognize that a problem exists. The implementation lag refers to the time it takes to put the policy into effect after it has been passed. The effectiveness lag refers to the time it takes for the policy to have a measurable impact on the economy.

The Time Necessary for Congress to Propose and Pass a Fiscal