One of the Timing Problems with Fiscal Policy Is an "Operational

question 24

Multiple Choice

One of the timing problems with fiscal policy is an "operational lag" that occurs between the:

• A)beginning of a recession and the time that it is recognized that the event is occurring.
• B)time the need for fiscal action is recognized and the time that action is actually taken.
• C)time that fiscal action is taken and the time that action has an impact on output, employment, and the price level.
• D)time that fiscal action has an impact on output, employment, and the price level and the time by which it can be determined if the policy is effective.

---

Definitions:

Standard Deviation

A means to assess the degree of variability or scattering in a set of numerical values.

Z-score

An indicator that quantifies the position of a value relative to the average in a collection of values, by indicating how many standard deviations it is from the mean.

Raw Scores

The original, untransformed scores or data collected from observations or experiments.

Hypothesized Mean

The mean value of a population parameter that is proposed in the null hypothesis, serving as a basis for testing statistical significance against observed data.