What Is the Effect of Lags in the Approval and Implementation

question 139

Multiple Choice

What is the effect of lags in the approval and implementation of fiscal policy?  

• A) Lags weaken fiscal policy as a tool of economic stabilization. 
• B) Lags increase the effectiveness of fiscal policy as a tool of economic stabilization. 
• C) Lags help legislators to better assess which policies are most appropriate to adopt. 
• D) Lags make fiscal policy more responsive to the current economic environment.

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Definitions:

Legal Action

A formal proceeding taken in a court of law to enforce or defend a legal right.

Reasonable Notice

The period of advance warning that an employer must give an employee before terminating their employment or that a tenant must receive before eviction, the length of which may vary based on agreements, laws, or contracts.

Severance Pay

Severance pay is compensation given to an employee who is dismissed from their job, often based on the length of employment and the terms of their employment contract.

Legal Action

The process of pursuing remedies or enforcement through the court system, including lawsuits or litigation.