Question

Which of the following lags is longest for monetary policy? O A. effectiveness lag B. implementation lag O C. variable lag O D. legislative lag Match each of the following statements with the type of lag it describes. Delays in the availability of timely and relevant data to be able to identify a problem can slow a potential policy response Even when data becomes available, it can take time to interpret what the data is signaling about the state of the economy Once a problem is recognized to exist in the economy. policymakers must debate and decide what policy or policies would most effectively stabilize the economy. After policymakers decide what policy approach is best, it may take even more time for the formal policy to actually be put into place

Answer 1

Effectiveness lag is the longest for monetary policy.

Matching

Data lag

Recognition lag

Legislative lag

Implementation lag