One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the
A. time the need for the fiscal action is recognized and the time that the action is taken.
B. start of a predicted recession and the actual start of the recession.
C. start of the recession and the time it takes to recognize that the recession has started.
D. time fiscal action is taken and the time that the action has its effect on the economy.
Answer: C
You might also like to view...
In what way(s) do the development paths chosen by Pakistan and Bangladesh differ? What are the main factors that have contributed to these differing paths?
What will be an ideal response?
National health insurance programs:
A. can increase use of health clinics versus traditional village doctors, who often have no medical training. B. are usually too costly for developing nations to implement. C. have solved the problem of providing high-quality care in places like India. D. are always less efficient than privatized programs.
Cartel agreements are more likely to succeed if: a. there are a large number of firms in the industry producing identical products. b. there are few firms in the industry producing identical products
c. there are a large number of firms in the industry producing differentiated products. d. there are a few firms in the industry producing differentiated products.
If the demand for softballs increases, one could expect the demand for leather to increase. This is attributable to the
A. opportunity cost of producing softballs. B. marginal productivity principle. C. reduction in the cost of production of softballs. D. derived demand for an input.