In general, fiscal policy has a longer ________ lag than monetary policy but shorter ________ lag.
A) recognition; response
B) implementation; recognition
C) implementation; response
D) response; implementation

Question

Quizplus · Accepted Answer

Fiscal policy has a longer implementation lag than monetary policy because it involves passing legislation and implementing changes to government spending or taxes. However, it typically has a shorter response lag than monetary policy because the effects of fiscal policy changes may be more immediate and directly affect consumer and business behavior.

In General, Fiscal Policy Has a Longer ________ Lag Than