The time between implementation of a macro-policy change and when the change exerts its primary influence is called the
A) impact lag.
B) recognition lag.
C) administrative lag.
D) tax reform lag.

Question

Quizplus · Accepted Answer

The impact lag refers to the time between implementation of a macro-policy change and when it exerts its primary influence. This lag can be caused by a variety of factors such as time it takes for the change to be recognized, administrative processes needed to enact the change, and the time it takes for the change to affect the economy. The other options, recognition lag, administrative lag, and tax reform lag refer to specific types of lags that may contribute to the impact lag, but they do not encompass the entire lag itself.

The Time Between Implementation of a Macro-Policy Change and When