Suppose policy makers are concerned about a shortage of long-term capital investment. To remedy the ...

Suppose policy makers are concerned about a shortage of long-term capital investment. To remedy the problem, various plans to cut capital gains taxes have been suggested. The delay in picking a plan is called the _____.
 a. implementation lag
 b. policy coordination problem
  c. decision-making lag
 d. recognition lag
 e. effectiveness lag

QUESTION 2

Policy makers may not know that the economy is in a recession until six months after the recession starts; this phenomenon is known as the _____.
 a. implementation lag
 b. policy coordination problem
  c. decision-making lag
 d. recognition lag
 e. effectiveness lag

QUESTION 3

The selection of a new policy takes place during a period of time known as the _____.
 a. activity lag
 b. decision-making lag
  c. effectiveness lag
 d. implementation lag
 e. recognition lag

QUESTION 4

The time it takes to identify and examine the nature and seriousness of an economic problem is the _____.
 a. activity lag
 b. decision-making lag
  c. effectiveness lag
 d. implementation lag
 e. recognition lag

QUESTION 5

The time it takes for the Fed's purchase of government securities to ultimately change aggregate demand is called the _____.
 a. recognition lag
 b. implementation lag
 c. effectiveness lag
 d. decision-making lag
  e. self-correction lag