Which of the following is not an example of a "lag" that diminishes the potential impact of the use of fiscal policy?
A) the data lag
B) the recessionary lag
C) the legislative lag
D) the transmission lag
E) None of the above; all are examples of such lags.

Question

Quizplus · Accepted Answer

The recessionary lag refers to the time it takes for policymakers to recognize that an economic slowdown has occurred. This is not necessarily a lag that diminishes the potential impact of fiscal policy, as it is simply a delay in response. On the other hand, the data lag, legislative lag, and transmission lag are all examples of delays that can reduce the effectiveness of fiscal policy.

Which of the Following Is Not an Example of a "Lag