Which of the following are time lags that fiscal policy makers must cope with?
A) recognition lags
B) action lags
C) effect lags
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Fiscal policy makers face all three types of time lags: recognition lags, which are delays in identifying an economic problem; action lags, which are delays in implementing a policy once it has been identified; and effect lags, which are delays in the policy's impact on the economy.

Which of the Following Are Time Lags That Fiscal Policy