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

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