Question 1
The implementation lag for fiscal policy is
◦ shorter than the implementation lag for monetary policy.
◦ longer than the implementation lag for monetary policy.
◦ the same length a the implementation lag for monetary policy.
◦ the same length as the recognition lag for fiscal policy.
Question 2
Economic policy may be inappropriate when it takes effect for all of the following reasons
except
◦ recognition lags.
◦ implementation lags.
◦ response lags.
◦ anticipation lags.