Which is NOT a lag associated with the implementation of fiscal policy?
A) legislative lag
B) recognition lag
C) monetary lag
D) effectiveness lag

Question

Quizplus · Accepted Answer

Monetary lag is not a lag associated with the implementation of fiscal policy. Monetary lag is associated with the implementation of monetary policy, which involves actions taken by the central bank to influence the money supply, interest rates, and credit conditions in the economy. The other lags (legislative lag, recognition lag, and effectiveness lag) are all associated with fiscal policy, which involves government spending and taxation policies aimed at achieving economic goals such as full employment, stable prices, and sustained economic growth.

Which Is NOT a Lag Associated with the Implementation of Fiscal