In Fiscal Policy, the Outside Lags

question 101

Multiple Choice

In fiscal policy, the outside lags:

• A) take a long time because macroeconomic data take time to gather and can be unreliable.
• B) take a long time because changes in taxes and government spending require approval from Congress and the president.
• C) usually take a much shorter time than inside lags.
• D) A and B are both correct.

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Definitions:

Forward Buying

Refers to the practice of purchasing goods in advance of when they are needed, often in anticipation of price increases or to ensure sufficient stock.

Peak Demand

The highest level of demand that a product or service experiences in a specified time period.

Overall Market

Overall market refers to the combined marketplace of all buyers and sellers in a given sector or industry, often considered in terms of total sales, demand, or size.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage.