Asked by

Kevin TheManBeast
on Nov 11, 2024

verifed

Verified

Long time lags hamper the effectiveness of economic policy because:

A) people don't want to wait for economic recovery.
B) the longer unemployment lasts,the more intense inflation becomes.
C) by the time the impact of a policy is felt,a new problem may have come along that requires a different policy,which may make the economic situation even worse.
D) if inflation is allowed to continue for too long,it becomes immune to policy interference.
E) if unemployment is allowed to continue for too long,it becomes immune to policy interference.

Economic Policy

A set of strategies chosen by a government to influence its economy, including fiscal policy (use of government spending and taxation) and monetary policy (controlling the nation's money supply and interest rates).

Time Lags

The delays between the initiation and the effect of an economic policy or other financial actions, impacting their effectiveness.

  • Appreciate the importance of various policy lags (recognition, decision-making, implementation, and effectiveness) in shaping economic policy.
verifed

Verified Answer

AG
Annel GonzalezNov 17, 2024
Final Answer:
Get Full Answer