The inside lag of macroeconomic policy is the:
A)time between a shift in aggregate demand and a shift in aggregate supply.
B)delay between when a policy change is needed and the policy is implemented.
C)difference between actual inflation and the target rate of inflation.
D)delay between when a policy change is implemented and when most of the effects of policy have occurred in the economy.

Question

Quizplus · Accepted Answer

The inside lag refers to the time delay between recognizing the need for a policy change and the actual implementation of that policy.

The Inside Lag of Macroeconomic Policy Is The