(1)The composite index of leading indicators turns downward for three consecutive months; (2)Economists reach agreement that the economy is moving into a recession; (3)A tax cut is proposed in Parliament; (4)The tax cut is passed by Parliament; (5)Consumption spending begins to rise,aggregate demand increases,and the economy begins to recover.
-Refer to the above information.The administrative lag of fiscal policy is reflected in events:

Question

Quizplus · Accepted Answer

The administrative lag of fiscal policy is the time taken between recognizing the need for action and the implementation of policy. This is reflected in the proposal and passing of the tax cut (events 3 and 4).

(1)The Composite Index of Leading Indicators Turns Downward for Three