One timing problem in using fiscal policy to counter a recession is the "administrative lag" that occurs between the:
A. Start of the recession and the time it takes to recognize that the recession has started
B. Start of a predicted recession and the actual start of the recession
C. Time fiscal action is taken and the time that the action has its effect on the economy
D. Time the need for the fiscal action is recognized and the time that the action is taken
D. Time the need for the fiscal action is recognized and the time that the action is taken
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What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis? Explain what data you would need to look at and why
What will be an ideal response?
Compared to a purely competitive firm, a monopsonist will pay:
A. A higher wage rate to its workers B. Lower wages but hire more workers than the purely competitive firm C. Lower wage rates and hire fewer workers than the purely competitive firm D. Lower wages while hiring the same quantity of workers as the purely competitive firm