(1) the Composite Index of Leading Indicators Turns Downward for Three

Multiple Choice

(1) The composite index of leading indicators turns downward for three consecutive months; (2) Economists reach agreement that the economy is moving into a recession; (3) A tax cut is proposed in Parliament; (4) The tax cut is passed by Parliament; (5) Consumption spending begins to rise, aggregate demand increases, and the economy begins to recover.Refer to the above information.The administrative lag of fiscal policy is reflected in events:

A) 1 and 2.
B) 2 and 3.
C) 3 and 4.
D) 4 and 5.