Suppose policy makers are concerned about a shortage of long-term capital investment.To remedy the problem,various plans to cut capital gains taxes have been suggested.The delay in picking a plan is called the _____.
A)implementation lag
B)policy coordination problem
C)decision-making lag
D)recognition lag
E)effectiveness lag

Question

Quizplus · Accepted Answer

The delay in picking a plan implies that policy makers are facing a decision-making lag. The other options are not applicable in this scenario; implementation lag refers to the time it takes for a policy to be put into effect, policy coordination problem refers to the difficulty in aligning the interests of multiple stakeholders, recognition lag refers to the time it takes for policy makers to recognize a problem, and effectiveness lag refers to the time it takes for a policy to have its intended impact.

Suppose Policy Makers Are Concerned About a Shortage of Long-Term