Multiplier effects take time to work through the economy,which is known as the

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The time it takes for the multiplier effect to work through the economy is known as the effect time lag. This is because there is often a delay between the initial injection of money or stimulus and the resulting ripple effects that reach the wider economy. The action time lag refers to the delay between the decision to take action and the implementation of that action, while recognition time lag refers to the delay between the emergence of an economic problem and the recognition of that problem by policymakers. Ricardian-equivalence time lag is not a commonly recognized term in economics.

Multiplier Effects Take Time to Work Through the Economy,which Is