Question 1
The ________ lag of stabilization policy represents the time that is necessary to put the desired policy into effect once economists and policy makers recognize the need.
◦ implementation
◦ business cycle
◦ response
◦ recognition
Question 2
Because Congress decides on the federal government's budget during the year prior to when it will take effect, the tax laws and spending programs embodied in the budget ________ once they are in place. Because of this, the implementation lag for fiscal policy is ________.
◦ are easy to change; often quite long
◦ are hard to change; often quite long
◦ are easy to change; usually very short
◦ are hard to change; usually very short