Respuesta :
Answer:
Administrative lag: The time it takes for policy to be effective
Explanation:
Answer:
The correct answer is letter "A": Administrative lag: The time it takes for policy to be effective.
Explanation:
Fiscal policy refers to the actions a government takes to adjust expenditures and taxes keeping on track the progress of the economy. There is a gap between the time when the fiscal policy is recognized and implemented. Those lags could be:
- Information lag
- Recognition lag
- Decision lag
- Implementation lag
- Administrative lag
- Operational lag
Administrative lag refers to the delay in taking action after the fiscal policy has already been recognized. Operational lag is the time it takes from implementing the fiscal policy and perceive a change in production, employment, and the price level.
Therefore, administrative lag is not the time or a policy to be effective. Operational lag is.
