Time Lags Associated with Policy Decision Making and Implementation Suggest

question 56

Multiple Choice

Time lags associated with policy decision making and implementation suggest that:

• A) increases in spending to fight a recessionary gap can be timed correctly.
• B) increases in spending to fight a recessionary gap may occur too early.
• C) increases in spending to fight a recessionary gap may occur too late.
• D) most information is old before the public is aware of it.

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Definitions:

Implementation Costs

Expenses associated with putting a newly adopted system, plan, or policy into effect.

Arbitrage

The practice of buying and selling assets in different markets or in different forms to profit from price discrepancies.

Confirmation Bias

Searching for (and giving more weight to) information and opinion that confirms what you believe rather than information and opinion to the contrary.

Over-Optimism

A tendency to have an overly positive outlook or expectations, particularly regarding projects or financial forecasts.