Which is NOT a relevant lag that would delay the effect of fiscal policy?
A) recognition lag
B) implementation lag
C) effectiveness lag
D) observation lag

Question

Quizplus · Accepted Answer

Observation lag refers to the time it takes to gather and analyze data on the current state of the economy. This is a relevant lag that may delay the implementation of fiscal policy. Therefore, D is not the correct answer. A, B, and C are all relevant lags that may delay the effect of fiscal policy.

Which Is NOT a Relevant Lag That Would Delay the Effect