The Effectiveness Lag Is

question 25

Multiple Choice

The effectiveness lag is

• A)the time it takes for policy makers to obtain data indicating what is happening in the economy.
• B)the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy.
• C)the time it takes to pass legislation to implement a particular policy.
• D)the time it takes for policy makers to change policy instruments once they have decided on the new policy.
• E)the time it takes for the policy actually to have an impact on the economy.

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Definitions:

Usage Tax

A tax imposed on specific goods and services that is usually proportionate to the level of consumption or use.

High Variation

Refers to a wide range of values or outcomes within a set of data, indicating significant differences or fluctuations.

Low Variation

The characteristic of data or a set of values where the differences between the values are minimal, showing consistency.

P-value

The probability that observed data could have occurred by chance under a null hypothesis. It's used in hypothesis testing to determine statistical significance.