A bill is submitted to Parliament in January 2001 that is designed to stimulate the economy and increase employment.The legislation is passed in September 2001,and the spending occurs from October 2001 to March 2002.Consequently

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The time lag between the implementation of the fiscal policy and its full effect on the economy is known as the effect time lag. In this case, the spending occurs from October 2001 to March 2002, and the full effect of the policy change is not expected until after March 2002 due to this time lag.

A Bill Is Submitted to Parliament in January 2001 That