Government policymakers increase government spending on school construction. The number of jobs in the economy gradually expands over the next three years. The time period that it takes for the number of jobs to change is referred to as _____ lag.

Question

Quizplus · Accepted Answer

An impact lag refers to the time it takes for the effects of a policy change, such as increased government spending on school construction, to manifest in the economy, such as through job creation.

Government Policymakers Increase Government Spending on School Construction