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Operational lag of fiscal policy is reflected in events

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Reference no: EM132271788

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:

  • 1 and 2.
  • 2 and 3.
  • 3 and 4.
  • 4 and 5.

Reference no: EM132271788

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