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Roberto Arreguin
on Nov 11, 2024

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The time it takes for the Fed's purchase of government securities to ultimately change aggregate demand is called the _____.

A) recognition lag
B) implementation lag
C) effectiveness lag
D) decision-making lag
E) self-correction lag

Effectiveness Lag

The time it takes for a policy action, particularly in monetary or fiscal policy, to produce its intended effects on the economy.

  • Familiarize oneself with the significance of policy lags (recognition, decision-making, implementation, and effectiveness) in the context of economic policy.
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Miguel A J Olavarria NazarioNov 13, 2024
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