What Is an Implementation Lag

question 102

Multiple Choice

What is an implementation lag?  

• A) the time it takes policymakers to decide what to do 
• B) the time it takes for the chosen policy to have its full impact on the economy 
• C) the time it takes to identify trouble in the economy and to assess its severity 
• D) the time it takes to introduce a change in monetary or fiscal policy

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

Trade

Conducting transactions involving the exchange, sale, or purchase of goods and services by or among people and countries.

Consuming Outside

The act of purchasing and enjoying goods or services outside one’s home, such as dining at restaurants or outdoor markets.

Opportunity Cost

The sacrifice involved in not picking the subsequent preferable option at the time of decision-making.