One Reason That Long Time Lags Hamper the Effectiveness of Economic

question 53

Multiple Choice

One reason that long time lags hamper the effectiveness of economic policy is that

• A)people don't want to wait for economic recovery
• B)the longer unemployment lasts the more intense inflation becomes
• C)by the time the impact of a policy is felt,a new problem may have come along that requires a different policy,which may make the economic situation even worse
• D)if inflation is allowed to continue for too long,it becomes immune to policy interference
• E)if unemployment is allowed to continue for too long,it becomes immune to policy interference

---

Definitions:

Constitution

The fundamental principles and precedents established by which a state or other organization is governed.

Executive Agreements

International agreements entered into by the executive branch of the US government without Senate approval, unlike treaties.

Foreign Policy

A government's strategy in dealing with other nations, encompassing diplomacy, military engagement, and economic relations.

Senate Approval

The formal endorsement or consent given by the Senate, which is one of the two chambers in the bicameral legislature of many countries, including the United States, for various governmental actions and appointments.