(1)The Composite Index of Leading Indicators Turns Downward for Three

question 164

Multiple Choice

(1) The composite index of leading indicators turns downward for three consecutive months; (2) Economists reach agreement that the economy is moving into a recession; (3) A tax cut is proposed in Parliament; (4) The tax cut is passed by Parliament; (5) Consumption spending begins to rise,aggregate demand increases,and the economy begins to recover.
-Refer to the above information.The operational lag of fiscal policy is reflected in events:

• A) 1 and 2.
• B) 2 and 3.
• C) 3 and 4.
• D) 4 and 5.

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Definitions:

Economic Welfare

A broad measure that evaluates the standard of living and overall well-being of people within an economy.

Qualitative Improvements

Enhancements to the features, performance, or quality of a product or service that go beyond mere quantitative changes.

Economic Welfare

The overall well-being and standard of living of people in an economy, measured through factors such as income, employment, and access to goods and services.

Psychic Income

The non-monetary satisfaction or pleasure derived from work or non-work activities, such as personal fulfillment, pride, or happiness.