The amount of time that elapses between the implementation of a policy and the results of that policy is
A) fiscal policy.
B) the recognition time lag.
C) the effect time lag.
D) the action time lag.

Question

Quizplus · Accepted Answer

The effect time lag refers to the time it takes for a policy to create its intended effects. This can vary depending on the specific policy and circumstances, but generally involves a period of time between the implementation of the policy and the outcomes or impacts that result. Fiscal policy refers to the use of government spending and taxation to influence the economy, but is not specifically related to the time lag between policy implementation and outcomes. The recognition time lag refers to the time it takes for policymakers to recognize that an economic problem exists, and the action time lag refers to the time it takes for policymakers to implement a policy once they have recognized the problem.

The Amount of Time That Elapses Between the Implementation of a Policy