In total, how long can the lags associated with discretionary policy extend?
A) from the time a problem occurs in the economy through to the time the problem is recognized by the government
B) from the time a problem is recognized by the government through to the time an agreed-on policy is approved
C) from the time a policy is implemented through to the time the policy's impact is felt in the economy
D) from the time a problem occurs in the economy through to the time a corrective policy has an impact on the economy

Question

In total, how long can the lags associated with discretionary policy extend?  
A) from the time a problem occurs in the economy through to the time the problem is recognized by the government 
B) from the time a problem is recognized by the government through to the time an agreed-on policy is approved 
C) from the time a policy is implemented through to the time the policy's impact is felt in the economy 
D) from the time a problem occurs in the economy through to the time a corrective policy has an impact on the economy

Quizplus · Accepted Answer

The lags associated with discretionary policy can extend from the time a problem occurs in the economy through to the time a corrective policy has an impact on the economy. This includes the time it takes for the problem to be recognized, an agreed-upon policy to be approved, and for the policy to be implemented and have an impact on the economy. Therefore, option D is the best choice.

In Total, How Long Can the Lags Associated with Discretionary