Increase government spending by building more libraries

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Reference no: EM131094545

Suppose that the president has decided to increase government spending by building more libraries. The legislation was rushed through Congress and enacted without any delay. From here, the libraries will take 10 months to plan and 2 years to build. Which of the following is true? Please be 100% sure

A. The planning and building of the libraries represents an impact lag of this policy.

B. The planning and building of the libraries represents a recognition lag of this policy.

C. This policy shows an example of automatic stabilizers taking effect.

D. This policy is contractionary.

Reference no: EM131094545

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