Lags and fiscal policyWhich of the following scenarios is an example of a transmission lag? Chose one.A. The economy enters a deep recession and Congress passes spending on public works that will take years to plan for and build.B. The economy enters a deep recession on the same day that new quarterly data show positive economic growth.C. 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 data lag? Chose one.A. A new law requires that all new spending bills go through at least one month of debate before receiving a congressional vote.B. Policymakers obtain relevant economic data months after a recession has already begun.C. In response to a recession, Congress passes a spending bill for interstate highway upgrades that will take years to plan and complete.
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