The _____ lag is the time required to turn fiscal policy into law and affect the economy.

Question

Quizplus · Accepted Answer

The implementation lag is the time it takes for fiscal policy changes to be passed into law and then to take effect in the economy. The information lag refers to the time it takes for policymakers to collect and analyze economic data to determine if action is necessary. The recognition lag refers to the time it takes policymakers to realize that action is needed. The decision lag refers to the time it takes policymakers to agree on a course of action. Therefore, the implementation lag is the most appropriate answer.

The _____ Lag Is the Time Required to Turn Fiscal