The time between when Federal Reserve policymakers decide to close an output gap and when they act to change the fed funds rate is an example of:
A)the outside lag of macroeconomic policy.
B)a structural policy change.
C)anchoring inflationary expectations.
D)the inside lag of macroeconomic policy.

Question

Quizplus · Accepted Answer

The inside lag of macroeconomic policy refers to the delay between recognizing an economic issue and implementing a policy to address it.

The Time Between When Federal Reserve Policymakers Decide to Close