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Sublight2097 Sublight2097
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The time lags, which must be either reduced or known with some precision if fiscal policy is to be an effective stabilizing technique, are the lags between
A) the beginning of a cyclical movement and its recognition.
B) the decision that compensatory action should be taken and the enactment of tax or expenditure changes.
C) the increase or decrease in net government receipts and their final effects on total spending.
D) all of the above, because a significant miscalculation with respect to any of these lags could increase aggregate instability.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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VincenzoDVincenzoD
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Sublight2097 Author
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8 years ago
My mind was going in all different directions trying to figure this one out. Thanks so much.
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