One Timing Problem in Using Fiscal Policy to Counter a Recession

question 153

Multiple Choice

One timing problem in using fiscal policy to counter a recession is the "operational 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:

Valves

Mechanical devices that control the flow and pressure of liquids, gases, and slurries within a system.

Hour

A unit of time equal to 60 minutes or 3600 seconds.

Transformation Process

The series of actions or operations that convert inputs into outputs in manufacturing or service delivery.

Multifactor Productivity

An efficiency measure that evaluates the output produced relative to a combination of input factors like labor, materials, and capital.