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

Question

Quizplus · Accepted Answer

The time it takes Congress to propose and pass a plan for fiscal policy is called the legislative lag. This lag can take months or even years, which can result in delays in implementing necessary policy changes. The recognition lag refers to the time it takes to recognize the need for a policy change, while the effectiveness lag refers to the time it takes for the policy to have an impact. The adjustment lag refers to the time it takes for the economy to adjust to the policy change.

The Time It Takes Congress to Propose and Pass a Plan