In January 2008, the unemployment rate was only 4.9 percent and real GDP was growing. But President Bush "acknowledged that Americans were 'anxious about the economy'." As a result, it was reported that "...the Bush administration and Congressional leaders, increasingly concerned about a possible recession, are moving closer to agreeing that an economic stimulus package is needed soon." In order for the package to be approved, the leaders in Washington implied that "... they might be able to put aside longstanding partisan differences." www.nytimes.com 1/12/2008
Which of the following lags are government officials trying to avoid?

Question

Quizplus · Accepted Answer

The government officials are trying to avoid all the mentioned lags: recognition lag (time taken to recognize a problem), impact lag (time for the policy to have an effect), and law-making lag (time to pass the necessary legislation).

In January 2008, the Unemployment Rate Was Only 4