Long time lags hamper the effectiveness of economic policy because:
A)people don't want to wait for economic recovery.
B)the longer unemployment lasts,the more intense inflation becomes.
C)by the time the impact of a policy is felt,a new problem may have come along that requires a different policy,which may make the economic situation even worse.
D)if inflation is allowed to continue for too long,it becomes immune to policy interference.
E)if unemployment is allowed to continue for too long,it becomes immune to policy interference.

Question

Quizplus · Accepted Answer

Long time lags mean that policies take a while to have an impact on the economy. In that time, new problems may arise that require different policies to address, which can make the economic situation worse. This makes it difficult for policymakers to keep up with changing economic conditions and can hinder the effectiveness of economic policy.

Long Time Lags Hamper the Effectiveness of Economic Policy Because