A policymaker would prefer that the lag in the effect of a policy be
A)long and variable in magnitude or size.
B)short and fixed in magnitude or size.
C)long and fixed in magnitude or size.
D)short and variable in magnitude or size.

Question

Quizplus · Accepted Answer

Policymakers prefer short and fixed lags in the effect of a policy because this allows them to see the impact of the policy quickly and make adjustments as needed. A long lag would mean that the policy may not have the intended effect until much later, making it difficult to assess its effectiveness and make changes. A variable or unpredictable lag would make it difficult to plan and allocate resources effectively.

A Policymaker Would Prefer That the Lag in the Effect