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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