The implementation lag of stabilization policy represents
A) the time that is necessary to put the desired policy into effect once economists and policy makers recognize the need.
B) the time needed for the economy to adjust to new conditions after new policies are introduced.
C) the time needed for the Federal Reserve to meet.
D) the time that is needed for policy makers to recognize the need to do something.

Question

Quizplus · Accepted Answer

The implementation lag of stabilization policy represents the time that is necessary to put the desired policy into effect once economists and policy makers recognize the need. This lag results from the administrative and political arrangements that must be made to implement new policies.

The Implementation Lag of Stabilization Policy Represents