When it takes time for the president and Congress to change fiscal policy to act on economic data, we have a(n)
A) aggregate time lag.
B) action time lag.
C) recognition time lag.
D) effect time lag.

Question

Quizplus · Accepted Answer

An action time lag refers to the time it takes for policymakers, such as the president and Congress, to implement changes to fiscal policy based on economic data. This lag can result in delayed responses to economic changes, which can have consequences for the overall economy. The other options - aggregate time lag, recognition time lag, and effect time lag - are related to different aspects of the time it takes for economic policy to have an impact, but do not directly relate to the delay in policymakers taking action.

When It Takes Time for the President and Congress to Change