The ________ lag represents the time it takes to pass legislation to implement a particular (fiscal)policy,while the ________ lag is the time it takes for policymakers to change policy instruments once they have decided on the new policy.
A)legislative; effectiveness
B)legislative; recognition
C)legislative; implementation
D)implementation; legislative

Question

Quizplus · Accepted Answer

The first lag described in the question refers to the legislative lag, which is the time it takes to pass legislation to implement a particular fiscal policy. The second lag referred to is the implementation lag, which is the time it takes for policymakers to change policy instruments once they have decided on the new policy. Therefore, the best choice is C (legislative lag and implementation lag).

The ________ Lag Represents the Time It Takes to Pass