Serenaceron8592 Serenaceron8592
  • 25-07-2017
  • Business
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When there is an interval between when the fiscal policy changes and corresponding changes in aggregate​ spending, we have​ a(n)?

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Erudite1
Erudite1 Erudite1
  • 02-08-2017
We have a EFFECT TIME LAG OR OPERATIONAL TIME LAG. This is the time interval between the onset of the policy and the result of the policy. There are two other types of fiscal policy time lag, these are:
recognition time lag: the time lag required to get information about the economy.
Action time lag or administrative time lag: the time interval between recognition of the economy problem and the application of the fiscal policy.
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