Several problems of timing may arise in connection with fiscal policy. Which of the following is not one of them? Select one: a. An administrative lag occurs due to a significant lag between the time the need for fiscal action is recognized and the time action is taken by a government. b. Operational lag also occurs between the time fiscal action is taken and the time that action affects output, employment, or the price level. c. Crowding out lag occurs since governments delay to take action for not to crowd out exports. d. The recognition lag is the time between the beginning of recession or inflation and the certain awareness that it is actually happening.
Several problems of timing may arise in connection with fiscal policy. Which of the following is not one of them? Select one: a. An administrative lag occurs due to a significant lag between the time the need for fiscal action is recognized and the time action is taken by a government. b. Operational lag also occurs between the time fiscal action is taken and the time that action affects output, employment, or the price level. c. Crowding out lag occurs since governments delay to take action for not to crowd out exports. d. The recognition lag is the time between the beginning of recession or inflation and the certain awareness that it is actually happening.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 13CQ
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Several problems of timing may arise in connection with fiscal policy. Which of the following is not one of them?
Select one:
a. An administrative lag occurs due to a significant lag between the time the need for fiscal action is recognized and the time action is taken by a government.
b. Operational lag also occurs between the time fiscal action is taken and the time that action affects output, employment, or the price level.
c. Crowding out lag occurs since governments delay to take action for not to crowd out exports.
d. The recognition lag is the time between the beginning of recession or inflation and the certain awareness that it is actually happening.
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