Ask Question
5 May, 10:54

Which of the following is not an example of a "lag" that diminishes the potential impact of the use of fiscal policy? a. the recessionary lag b. the data lag c. the legislative lag d. the transmission lag

+3
Answers (1)
  1. 5 May, 11:04
    0
    a. the recessionary lag

    Explanation:

    Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

    Lag in economics can be defined as a measure of the time it takes to recognize economic conditions and how they're being responded to by the government (policy makers).

    For instance, measuring the time between when a fiscal policy is implemented and when the people feel its impact in the society.

    The recessionary lag is not an example of a "lag" that diminishes the potential impact of the use of fiscal policy because after implementation, the next phase is for the people to feel the impact or effectiveness of the fiscal policy.

    Examples of a "lag" that diminishes the potential impact of the use of fiscal policy are;

    1. The data lag.

    2. The legislative lag.

    3. The transmission lag.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following is not an example of a "lag" that diminishes the potential impact of the use of fiscal policy? a. the recessionary ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers