The existence of lags in designing and implementing fiscal policy helps Illustrate some of the limitations of fiscal policy almed at easing the burdens of a recession. Which of the following statements best describes a situation when fiscal policy is more appropriate? O The Implementation lag is shorter than the recognition and legislative lags. O Demand-pull Inflation is expected to occur as the economy begins to self-correct. O To stimulate an economy that is in a severe recession or one that is slow to correct. O Fiscal policy favors tax cuts Instead of Increased government purchases since this removes the legislative lag.

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The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing
the burdens of a recession.
Which of the following statements best describes a situation when fiscal policy is more appropriate?
O The Implementation lag is shorter than the recognition and legislative lags.
O Demand-pull Inflation is expected to occur as the economy begins to self-correct.
O To stimulate an economy that is in a severe recession or one that is slow to correct.
O Fiscal policy favors tax cuts Instead of increased government purchases since this removes the legislative lag.
Transcribed Image Text:The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing the burdens of a recession. Which of the following statements best describes a situation when fiscal policy is more appropriate? O The Implementation lag is shorter than the recognition and legislative lags. O Demand-pull Inflation is expected to occur as the economy begins to self-correct. O To stimulate an economy that is in a severe recession or one that is slow to correct. O Fiscal policy favors tax cuts Instead of increased government purchases since this removes the legislative lag.
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