Inside Lags Associated with Fiscal Policy Are Due to All

question 12

Multiple Choice

Inside lags associated with fiscal policy are due to all of the following, except:

• A) the political infighting involved in approving changes in government spending or taxes.
• B) the poor and conflicting data available to policymakers.
• C) the delayed response of the firms to a tax cut.
• D) the delays in assessing the real state of the economy.

---

Definitions:

Memory Consolidation

The process in which short-term memories are converted into long-term memories, making them stable and enduring over time.

Proactive Interference

The tendency for previously learned information to hinder the recall of newly learned information.

Long-term Memory

A phase of memory responsible for the storage of information for an extended period, ranging from a few minutes to a lifetime.

Material Interference

In psychology, the effect that the presence of one set of learning material has on the ability to recall or learn another set.