The time necessary for the government to put a fiscal policy plan in place is called a(n)

Question

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The time necessary for the government to put a fiscal policy plan in place is called the implementation lag. The legislative lag refers to the time it takes for Congress to pass the fiscal policy, and the recognition lag refers to the time it takes for policymakers to recognize that action is needed. While all of these lags contribute to the overall delay in implementing fiscal policy, the specific lag associated with putting the plan in place is the implementation lag.

The Time Necessary for the Government to Put a Fiscal