One of the Timing Problems with Fiscal Policy Is an "Operational

question 24

Multiple Choice

One of the timing problems with fiscal policy is an "operational lag" that occurs between the:

• A)beginning of a recession and the time that it is recognized that the event is occurring.
• B)time the need for fiscal action is recognized and the time that action is actually taken.
• C)time that fiscal action is taken and the time that action has an impact on output, employment, and the price level.
• D)time that fiscal action has an impact on output, employment, and the price level and the time by which it can be determined if the policy is effective.

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Definitions:

Adaptive Radiation

Rapid evolution of several species from a common ancestor into new ecological or geographic zones.

Fossil Record

The collection of fossils, which are the preserved remains or traces of animals, plants, and other organisms from the remote past, providing evidence of the history of life on Earth.

Sedimentary Rock

Rock that has formed through the accumulation and solidification of sediment, especially sediment transported by water, ice, and wind.

Biochemistry

The branch of science that explores the chemical processes within and related to living organisms.