One Timing Problem in Using Fiscal Policy to Counter a Recession

question 202

Multiple Choice

One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the

• A)start of the recession and the time it takes to recognize that the recession has started.
• B)start of a predicted recession and the actual start of the recession.
• C)time fiscal action is taken and the time that the action has its effect on the economy.
• D)time the need for the fiscal action is recognized and the time that the action is taken.

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