The lag between the time that economic stimulus is needed and the time that a tax cut is passed by Parliament is an example of a:
A)fiscal inside lag.
B)fiscal outside lag.
C)monetary inside lag.
D)monetary outside lag.

Question

Quizplus · Accepted Answer

The lag between the need for economic stimulus and the passing of a tax cut by Parliament is a fiscal inside lag, which refers to the delay in implementing fiscal policy measures.

The Lag Between the Time That Economic Stimulus Is Needed