Which of the following is NOT a lag that affects the working of fiscal policy?
A) a problem being recognised and action being taken
B) action being taken and effects happening
C) a problem happening and it being noticed
D) action being taken and expectations being formed

Question

Quizplus · Accepted Answer

The lag between action being taken and expectations being formed is not typically considered a lag in fiscal policy. Fiscal policy lags usually involve recognition, decision, and implementation delays, as well as the time it takes for the effects to materialize.

Which of the Following Is NOT a Lag That Affects