The amount of time it takes Congress to debate the size of a tax cut is known as the
A)action time lag.
B)effect time lag.
C)recognition time lag.
D)Ricardian-equivalence time lag.

Question

Quizplus · Accepted Answer

The action time lag refers to the time it takes for Congress to debate and take action on fiscal policies, such as tax cuts. This includes the time it takes for a proposal to be introduced, discussed, and voted on. The effect time lag refers to the time it takes for the policy changes to have an impact on the economy, and the recognition time lag refers to the time it takes for policymakers to recognize the need for a policy change. The Ricardian-equivalence time lag is not a concept related to the time it takes for Congress to debate tax cuts.

The Amount of Time It Takes Congress to Debate the Size