How does Recognition lag affect economic policies?

Expert Solution

Inside lag is the amount of time takes for a central bank to respond to a economy shock

inside lag severe more problem for fiscal policy than monetary policy. fiscal policy is conducted by a law-making body that has other issues to confront as well as a deliberative highly process with which to confront them.

The most immediate effect of fiscal policy is to change the aggregate demand for services and goods

Rahul Sunny answered 1 year ago

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Which of the following is NOTcharacteristic of monetary policy? A. Recognition lag. B. Operational lag. C....

Which of the following is NOTcharacteristic of monetary policy? A. Recognition lag. B. Operational lag. C. Administrative lag. D. All of the above are characteristic of monetary policy.