The Effectiveness Lag Is the Time Between

question 75

Multiple Choice

The effectiveness lag is the time between

• A) the implementation of a policy and when the impact of the policy is felt.
• B) the enactment of a policy and the implementation of the policy.
• C) realizing a policy is needed and enacting the policy.
• D) the occurrence of an event and policymakers realizing the event has occurred.

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Definitions:

Economy Control

The use of various tools and policies by a government to regulate and oversee the economy’s health and stability.

Stagflation

A condition of slow economic growth and relatively high unemployment – a period of stagnation – accompanied by rising prices (inflation).

High Unemployment Rates

A condition where a significant portion of a workforce is not employed but is actively seeking work, reflecting economic downturns or structural changes in the economy.

High Inflation Rates

A situation characterized by a rapid and excessive rise in the general price level of goods and services in an economy over a period of time.