The implementation lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy.
B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy.
C) the time it takes to pass legislation to implement a particular policy.
D) the time it takes for policy makers to change policy instruments once they have decided on the new policy.
E) the time it takes for the policy actually to have an impact on the economy.
D
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Have you ever bought a good by exchanging a piano for it? Unlikely. Economists emphasize this point when they discuss the degree to which an asset can easily be used as money. They refer to the asset's
a. liquidity b. convertibility c. availability d. medium of exchange e. thriftiness
Answer the following questions true (T) or false (F)
1. Suppose the extra cost for a town to lower its speed limit by 5 mph is $20 per day. Then, the town should lower the speed limit if it can generate an additional benefit of $20 per day. 2. All economic questions arise from the fact that resources are unlimited. 3. Even if the population declines, scarcity will still exist.