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ECON 211, Macroeconomics, February 2016 Joshua C Bare aplia Personalized Reviews

ID: 2494595 • Letter: E

Question

ECON 211, Macroeconomics, February 2016 Joshua C Bare aplia Personalized Reviews Discussion Course Materials Home Grades Fiscal Policy and the Federal Budget Graded Assignment I Read Chapter 11 l Back to Assignment Due Monday 04.04.16 at 08:15 AM Average: 2 Attempts: 6. Lags and fiscal policy Which of the following scenarios is an example of a data lag? O The economy enters a deep recession on the same day that new quarterly data show positive economic growth. O The economy enters a deep recession and Congress passes spending on public works that will take years to plan for and build. O The economy enters a deep recession, and Congress takes two months to approve an extensive tax cut bill. Which of the following scenarios is an example of a legislative lag? A new law requires that all new spending bills go through at least one month of debate before receiving a congressional vote. In response to a recession, Congress passes a spending bill for interstate highway upgrades that will take years to plan and complete. O Policymakers obtain relevant economic data months after a recession has already begun. Grade It Now Save & Continue Copyright Notices Terms of Use Privacy Notice Security Notice Accessibility Customer Support Sign O Suggestions Session 58:27 Timeout

Explanation / Answer

Which of the following scenarios is an example of data lag.

Answer - The economy enters a deep recession, and congress takes two months to approve an extensive tax cut bill.

Which of the following scenarios is an example of legislative lag.

Answer - A new law requires that all new spending bills go though at least one month of debate before receiving a congressional vote.