One reason that long time lags hamper the effectiveness of economic policy is that
A)people don't want to wait for economic recovery
B)the longer unemployment lasts the more intense inflation becomes
C)by the time the impact of a policy is felt,a new problem may have come along that requires a different policy,which may make the economic situation even worse
D)if inflation is allowed to continue for too long,it becomes immune to policy interference
E)if unemployment is allowed to continue for too long,it becomes immune to policy interference

Question

Quizplus · Accepted Answer

Long time lags in economic policies mean that by the time the impact of a policy is felt, the economic situation may have changed, and a new problem may require a different policy. This can make the original problem worse, hampering the effectiveness of economic policy. Choices A, B, D, and E are not accurate descriptions of how long time lags hamper economic policy.

One Reason That Long Time Lags Hamper the Effectiveness of Economic