Answer the Question on the Basis of the Following Sequence

question 101

Multiple Choice

Answer the question on the basis of the following sequence of events involving fiscal policy:
(1) The composite index of leading indicators turns downward for three consecutive months,suggesting the possibility of a recession.
(2) Economists reach agreement that the economy is moving into a recession.
(3) A tax cut is proposed in Congress.
(4) The tax cut is passed by Congress and signed by the president.
(5) Consumption spending begins to rise,aggregate demand increases,and the economy begins to recover. Refer to the information.The recognition lag of fiscal policy is reflected in events:

• A) 1 and 2.
• B) 2 and 3.
• C) 3 and 4.
• D) 4 and 5.

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Definitions:

Conformity

The act of aligning one's attitudes, beliefs, or behaviors to match those of a group or social standard, often due to perceived pressure.

Door-in-the-Face Technique

A persuasion strategy where an initially large request is made knowing it will be refused so that a smaller, more moderate request will seem reasonable by comparison.

Temporoparietal Junction

A region of the brain where the temporal and parietal lobes meet, involved in processing social information and theory of mind.

Occipital-Parietal

Referring to the occipital and parietal lobes of the brain, areas involved in processing visual and spatial information.