The Outside Lag Is the Time

question 10

Multiple Choice

The outside lag is the time:

• A) before automatic stabilizers respond to economic activity.
• B) when automatic stabilizers are not effective.
• C) between a shock to the economy and the policy action responding to the shock.
• D) between a policy action and its influence on the economy.

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Definitions:

Appeals Court

An appeals court is a court that reviews decisions made by lower courts to ensure the law was applied correctly and justice was served.

Civil Case

A legal dispute between two or more parties that involves seeking compensation or specific performance rather than criminal sanctions.

Judicial Restraint

The principle that judges should limit their own power to strike down laws unless they clearly violate the Constitution.

Elected Officials

Individuals chosen through a voting process to hold public office and represent the electorate in legislative, executive, or judicial capacities.