there are several time lags involved when fiscal policy is applied. the first hurdle faced by a government is part 2 a. the time it takes congress to pass the bill to enact the fiscal policy. b. the time it takes for the policy to have an effect on the economy. c. recognizing that the economy is facing a problem that could be solved by applying fiscal policy. d. the time it takes congress to decide upon the type of fiscal policy to be used.

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04-11-2022
Business

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there are several time lags involved when fiscal policy is applied. the first hurdle faced by a government is part 2 a. the time it takes congress to pass the bill to enact the fiscal policy. b. the time it takes for the policy to have an effect on the economy. c. recognizing that the economy is facing a problem that could be solved by applying fiscal policy. d. the time it takes congress to decide upon the type of fiscal policy to be used.

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JitSen257idn JitSen257idn · Answer 1 · 2022-11-09T08:28:07-05:00

The time that passes before an economic effect of a monetary or fiscal policy change is felt is called the response lag.

These kinds of policies are frequently put in place as a result of a devastating economic effect or to support the economy at a particular stage of the economic cycle.

When the government uses discretionary fiscal policy, why do delays occur?

Because it takes time to select and implement a policy that will benefit the economy, discretionary fiscal policy can occasionally experience lags or delays. Permanent spending or taxation laws that are already in place and help regulate the economy are referred to as non-discretionary fiscal policy.

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