In most nations,one or more governing bodies must approve government spending or new tax policies.This causes a(n)________ lag between setting fiscal policy and seeing its effects.
A) recognition
B) implementation
C) impact
D) countercyclical
E) automatic

Question

Quizplus · Accepted Answer

Implementation lag refers to the time that elapses between enacting a policy and its actual effects. This lag occurs because it takes time to put policies into action, especially when multiple governing bodies must approve and implement them. The recognition lag occurs when policymakers must first identify an economic problem, and the impact lag occurs between the time a policy has its intended effect and when that effect is felt by the economy. Countercyclical policies are those designed to counteract the business cycle, and automatic policies are those that are triggered automatically by certain economic conditions, without requiring legislative or administrative action.

In Most Nations,one or More Governing Bodies Must Approve Government