The implementation lag is _____ for fiscal than for monetary policy; the lag before the effects of monetary policy on real output and unemployment is ____ than for its effects on real output and unemployment:
A)Longer, long and variable
B)Longer; relatively short and predictable
C)Shorter; long and variable.
D)Shorter; relatively short and predictable

Question

The implementation lag is _____ for fiscal than for monetary policy; the lag before the effects of monetary policy on real output and unemployment is ____ than for its effects on real output and unemployment:
A)​Longer, long and variable
B)​Longer; relatively short and predictable
C)​Shorter; long and variable.
D)​Shorter; relatively short and predictable

Quizplus · Accepted Answer

The implementation lag is generally longer for fiscal policy due to the time it takes for government spending and tax decisions to be made and implemented. The effects of monetary policy on real output and unemployment are long and variable, as changes in interest rates can take time to influence borrowing, spending, and investment decisions.

The Implementation Lag Is _____ for Fiscal Than for Monetary