Advocates of discretionary policy usually view ________ policy as having a shorter effectiveness lag than ________ policy,but there is substantial uncertainty about how long this lag is.

Question

Quizplus · Accepted Answer

Advocates of discretionary policy often believe that fiscal policy, which involves government spending and taxation decisions, has a shorter effectiveness lag compared to monetary policy, which involves changes in interest rates and money supply. However, there is uncertainty about the exact duration of these lags.

Advocates of Discretionary Policy Usually View ________ Policy as Having