One Timing Problem in Using Fiscal Policy to Counter a Recession

question 48

Multiple Choice

One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the:

• A) Start of the recession and the time it takes to recognize that the recession has started
• B) Start of a predicted recession and the actual start of the recession
• C) Time fiscal action is taken and the time that the action has its effect on the economy
• D) Time the need for the fiscal action is recognized and the time that the action is taken

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Definitions:

Secondary Storage

Non-volatile memory that is used to store data permanently, serving as additional storage apart from the computer's primary storage.

Primary Storage

Memory that is directly accessible by the CPU of a computer, such as RAM, used for storing data temporarily during processing.

Volatile

Referring to a type of memory that requires power to maintain the stored information; it loses its data when the system is turned off.

Hardware

The physical components of a computer system, such as the central processing unit (CPU), memory, and input/output devices.