The Outside Lag of Macroeconomic Policy Is The

Multiple Choice

The outside lag of macroeconomic policy is the:

A) time between a shift in aggregate demand and a shift in aggregate supply.
B) delay between when a policy change is needed and the policy is implemented.
C) difference between actual inflation and the target rate of inflation.
D) delay between when a policy change is implemented and when most of the effects of policy have occurred in the economy.