In the conduct of macroeconomic policy, what are the four lags that complicate the timing of the policy's implementation?
A) the recognition lag, the decision-making lag, the correction lag, and the feedback lag
B) the statistical lag, the decision-making lag, the implementation lag, and the effectiveness lag
C) the recognition lag, the decision-making lag, the implementation lag, and the effectiveness lag
D) the statistical lag, the decision-making lag, the correction lag, and the effectiveness lag

Question

In the conduct of macroeconomic policy, what are the four lags that complicate the timing of the policy's implementation?  
A) the recognition lag, the decision-making lag, the correction lag, and the feedback lag 
B) the statistical lag, the decision-making lag, the implementation lag, and the effectiveness lag 
C) the recognition lag, the decision-making lag, the implementation lag, and the effectiveness lag 
D) the statistical lag, the decision-making lag, the correction lag, and the effectiveness lag

Quizplus · Accepted Answer

The four lags that complicate the timing of macroeconomic policy implementation are the recognition lag (time taken to realize a change in the economy), decision-making lag (time taken to decide on a policy), implementation lag (time taken to implement the policy), and effectiveness lag (time taken for the policy to take effect). Choice C correctly lists all four lags.

In the Conduct of Macroeconomic Policy, What Are the Four