The process of deciding on and passing fiscal policy legislation creates a(n) _______ lag.
A) information
B) formulation
C) implementation
D) direction

Question

Quizplus · Accepted Answer

The formulation lag refers to the time it takes to gather information and decide on a fiscal policy. The implementation lag refers to the time it takes for the policy to take effect after it has been passed. The direction and information lags are not directly related to the process of passing fiscal policy legislation.

The Process of Deciding on and Passing Fiscal Policy Legislation