The fact that it takes time for government to take action, even after a problem has been diagnosed, is one reason for the occurrence of
A) inside lags.
B) outside lags.
C) crowding out.
D) the multiplier effect.

Question

Quizplus · Accepted Answer

Inside lags refer to the delay between the recognition of an economic problem and the implementation of a policy to address it. This includes the time taken for policymakers to identify the issue, decide on the appropriate action, and implement the policy.

The Fact That It Takes Time for Government to Take