In 2011,most of the 2009 federal stimulus package had been spent,but the unemployment rate remained exceptionally high at nearly 10%.This is an example of the:
A) recognition lag.
B) legislative lag.
C) implementation lag.
D) effectiveness lag.

Question

Quizplus · Accepted Answer

The effectiveness lag refers to the time it takes for policy changes to have an impact on economic conditions. In this case, the federal stimulus package had been implemented and spent, but it had not yet had a significant impact on reducing the unemployment rate. This suggests that there was a lag in the effectiveness of the policy. The other options do not fit this scenario as well - the recognition lag refers to the time it takes policymakers to identify a problem, the legislative lag refers to the time it takes for legislation to be passed, and the implementation lag refers to the time it takes for policies to be put into practice after legislation is passed.

In 2011,most of the 2009 Federal Stimulus Package Had Been