One of the Timing Problems with Fiscal Policy Is an "Operational

Multiple Choice

One of the timing problems with fiscal policy is an "operational lag" that occurs between the:

A) beginning of a recession and the time that it is recognized that the event is occurring.
B) time the need for fiscal action is recognized and the time that action is actually taken.
C) time that fiscal action is taken and the time that action has an impact on output, employment, and the price level.
D) time that fiscal action has an impact on output, employment, and the price level and the time by which it can be determined if the policy is effective.