In total,the lags associated with discretionary policy can extend from the time a
A)problem occurs in the economy through the time it is recognized by the government
B)problem is recognized by the government through the time an agreed-on policy is approved
C)policy is approved through the time the policy is implemented
D)policy is implemented through the time its impact is felt in the economy
E)problem occurs in the economy through the time a corrective policy has an impact on the economy

Question

Quizplus · Accepted Answer

The lags associated with discretionary policy start from the time a problem occurs in the economy through the time a corrective policy has an impact on the economy. This means that there will be a delay between the occurrence of a problem and the implementation of a policy to address the problem, and then another delay before the policy has any measurable impact on the economy. The other choices are either incomplete or cover only a part of the overall lags associated with discretionary policy.

In Total,the Lags Associated with Discretionary Policy Can Extend from the Time