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Fiscal Policy Worksheet Form

Fiscal Policy Worksheet Form

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hey everyone i'm mr. willis and you will love economics using fiscal policy has its drawbacks there are several problems that government can run into that can ultimately reduce the effectiveness of spending and tax policy the first set of problems are delays in the implementation of fiscal policy that are known as time lapse there are three separate types of time lengths the first type of time lag is recognition lack this is the delay created when government fails to react to economic indicators and address economic problems if Congress means economic indicators incorrectly it can misdiagnosed economic problems or fail to recognize them entirely this means that economic problems persist or worse until policymakers can recognize that they exist the second type of time lag is administrative lag this is the delay created when legislative gridlock slows the implementation of fiscal policy policy takes time to pass through the legislative process it goes through debate and committee

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