The ________ Lag Is the Time It Takes for Policymakers

question 60

Multiple Choice

The ________ lag is the time it takes for policymakers to change policy instruments once they have decided on the new policy,while the ________ lag is the time it takes for the policy to actually have an impact on the economy.

• A)recognition; implementation
• B)legislative; effectiveness
• C)implementation; recognition
• D)implementation; effectiveness

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Definitions:

Price Sensitivity

The degree to which the demand for a product or service is affected by changes in its price, illustrating consumer response to price adjustments.

Consumer Surplus

The contrast between what buyers are willing to offer for a good or service and the amount they actually spend.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to acquire it.