Which of the following are lags that fiscal policy makers must cope with?
A)recognition time lags
B)action time lags
C)effect time lags
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Fiscal policy makers must cope with all three types of lags: recognition time lags, which refers to the time it takes to identify an economic problem; action time lags, which refers to the time it takes for policy makers to decide on and implement a policy response; and effect time lags, which refers to the time it takes for the policy to have its desired impact on the economy.

Which of the Following Are Lags That Fiscal Policy Makers