The implementation lag is likely to be:
A) longer for changes in government spending than for changes in taxation.
B) shorter for changes in government spending than for changes in taxation.
C) indefinitely long for both changes in government spending and changes in taxation.
D) similar in length for both changes in government spending and changes in taxation.

Question

Quizplus · Accepted Answer

The implementation lag refers to the time gap between the decision to implement a policy and the actual implementation of that policy. In general, changes in government spending tend to involve longer implementation lags compared to changes in taxation. This is because changes in spending require more planning, coordination, and administrative effort to execute. In contrast, changes in taxation can often be implemented relatively quickly through adjustments to tax rates or exemptions.

The Implementation Lag Is Likely to Be