2. The Administrative Lag in discretionary macroeconomic policy is (a) The lag between the time when the economy changed direction and the time when economists are able to conclude that the economy had actually changed and in which direction. (b) The time it takes for policymakers to devise policy responses to the macroeconomic problem. (c) The time it takes to implement the policies devised to address a macroeconomic problem. (d) The time it takes for the macroeconomic policies to materially change the economy.

The objective of the question is to understand the concept of 'Administrative Lag' in the context of…

Answered: 2. The Administrative Lag in…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. The Administrative Lag in discretionary macroeconomic policy is

		(a) The lag between the time when the economy changed direction and the time when economists are able to conclude that the economy had actually changed and in which direction.
		(b) The time it takes for policymakers to devise policy responses to the macroeconomic problem.
		(c) The time it takes to implement the policies devised to address a macroeconomic problem.
		(d) The time it takes for the macroeconomic policies to materially change the economy.