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The implementation lag is ____.
A) the time it takes for policy makers to obtain data indicating what is happening in the economy
B) the time it takes for policy makers to be sure of what the data are signaling about the future
course of the economy
C) the time it takes to pass legislation to implement a particular policy
D) the time it takes for policy makers to change policy instruments once they have decided on
the new policy
E) the time it takes for the policy actually to have an impact on the economy
Answer: D
Diff: 2 Type: MC Page Ref: 610
Skill: Recall
Objective List: 25.1 Discern between activist and non-activists views on monetary policy
The effectiveness lag is ____.
A) the time it takes for policy makers to obtain data indicating what is happening in the economy
B) the time it takes for policy makers to be sure of what the data are signaling about the future
course of the economy
C) the time it takes to pass legislation to implement a particular policy
D) the time it takes for policy makers to change policy instruments once they have decided on
the new policy
E) the time it takes for the policy actually to have an impact on the economy
Answer: E
Diff: 2 Type: MC Page Ref: 611
Skill: Recall
Objective List: 25.1 Discern between activist and non-activists views on monetary policy
The time it takes for policy makers to obtain data indicating what is happening in the
economy is called ____.
A) the data lag
B) the recognition lag
C) the legislative lag
D) the implementation lag
E) the effectiveness lag
Answer: A
Diff: 2 Type: MC Page Ref: 610
Skill: Recall
Objective List: 25.1 Discern between activist and non-activists views on monetary policy