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Essay

Macroeconomic Principle and Policy

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Leisha B

 

Date added:

November 26, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 382

 

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3558 times

 

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Essay content:

Time lags can adversely affect the efforts of the Congress and the President in attempting to maintain a healthy economy. There are three types of time lags: (Reem) 1. Recognition Time Lag: It usually is some time before we know when the economy has a decline or incline in activity. It also takes time to collect the information about the present situation of the economy...
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So, in other words the government is about 6 months behind the curve, when it comes to trying to jump-start the economy. 2. Action Time Lag: This is the time needed after acknowledging an economic problem and putting a policy into effect. The financial plan process can be long and complex and politicians seldom agree on a decision...
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