Suppose policy makers are concerned about a shortage of long-term ...

[Pineapplelove6]

Suppose policy makers are concerned about a shortage of long-term capital investment. To remedy the problem, various plans to cut capital gains taxes have been suggested. The delay in picking a plan is called the _____.
 a. implementation lag
 b. policy coordination problem
  c. decision-making lag
 d. recognition lag
 e. effectiveness lag

Question 2

Policy makers may not know that the economy is in a recession until six months after the recession starts; this phenomenon is known as the _____.
 a. implementation lag
 b. policy coordination problem
  c. decision-making lag
 d. recognition lag
 e. effectiveness lag

[duke02]

Answer to Question 1

c

Answer to Question 2

d