When fiscal policy is used to manage the economy

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When fiscal policy is used to manage the economy, there are a number of factors that can delay its impact. Which of the following is an example of a recognition lag?

A. After the policy takes effect, it takes time for its complete effects to ripple through the economy. Please be 100% Sure

B. After an elected official proposes to spend more money to stimulate economic growth, it takes time for other elected officials to agree and take action.

C. After a law is passed that authorizes government spending, the bureaucracy within the government needs time to set up needed processes and procedures, and to identify areas that have the greatest need for federal spending.

D. Although economic conditions seem bad enough to warrant government action, it takes time for economists to confirm that conditions are bad enough.

Reference no: EM131094543

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