The economy may turn around on its own before a new policy registers its full impact primarily because of the
A)recognition lag
B)decision-making lag
C)effectiveness lag
D)implementation lag
E)time lag

Question

Quizplus · Accepted Answer

The effectiveness lag refers to the time it takes for a policy to have its full impact on the economy. During this period, the economy might recover on its own due to other factors before the policy's effects are fully realized.

The Economy May Turn Around on Its Own Before a New