The Economy May Turn Around on Its Own Before a New

question 191

Multiple Choice

The economy may turn around on its own before a new policy registers its full impact primarily because of the

• A)recognition lag
• B)decision-making lag
• C)effectiveness lag
• D)implementation lag
• E)time lag

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Definitions:

Net Exports

The value of a country's exports minus its imports; a positive number indicates a trade surplus, while a negative one indicates a trade deficit.

Trade Surplus

A situation in which a country's exports exceed its imports.

Exports

Goods or services sent from one country to another for sale or trade.

Imports

goods or services brought into one country from another for sale, often influencing the domestic market's supply and price levels.