-Using the graph above, suppose it takes policy makers from time t2 to time t4 to take an action to stimulate the economy. What kind of policy lag is this and why does it happen?

Question

Quizplus · Accepted Answer

The Answer is This is an example of an implementation lag. It take Congress time to react. After all, it's a 535 member body with the House and the Senate having to pass legislation for eventual signing by the president.

-Using the Graph Above, Suppose It Takes Policy Makers from Time