Which of the Following Contributes to Implementation Lag for Discretionary

question 39

Multiple Choice

Which of the following contributes to implementation lag for discretionary fiscal policy?

• A) the time it takes to secure legislative approval for policy actions
• B) the time it takes for economic agents to respond to policy actions
• C) the difficulty of collecting economic data in a timely manner
• D) the time it takes to borrow funds to finance the fiscal policy

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Definitions:

Lump Sum

A single payment made at a particular time, as opposed to smaller installments made over a period.

Impact

The effect or influence of one thing on another, particularly in the context of changes or interventions.

Paychecks

Regular payments made to employees for their work, typically issued on a fixed schedule and reflecting gross earnings, net earnings, and deductions.

Incentive Pay

Additional compensation awarded to employees for achieving defined goals, exceeding performance standards, or for exceptional contributions to the company.