Answer the Question on the Basis of the Following Sequence

question 90

Multiple Choice

Answer the question on the basis of the following sequence of events involving fiscal policy: (1) The composite index of leading indicators turns downward for three consecutive months, suggesting the possibility of a recession.(2) Economists reach agreement that the economy is moving into a recession.(3) A tax cut is proposed in Congress.(4) The tax cut is passed by Congress and signed by the president.(5) Consumption spending begins to rise, aggregate demand increases, and the economy begins to recover.The operational lag of fiscal policy is reflected in event(s)

• A)1 and 2.
• B)2 and 3.
• C)3 and 4.
• D)5.

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Definitions:

Community Development

A process where community members come together to take collective action and generate solutions to common problems.

Poverty Line

A threshold income level below which an individual or family is considered to be living in poverty.

Social Network

A platform or community of individuals connected by various social relationships, such as friendship, kinship, common interests.

Microsystems

Small, immediate environments where individuals interact and develop, such as families or classrooms.