Question

Assume that the economy is in recession. The U.S. Congress is now debating a bill calls for an increase government spending to counter the effects of the recession. The President then would have the sign the bill or veto it. Which problem of timing with fiscal policy is most closely associated with this situation?

Answer 1

Answer and Explanation:

From the following given case/scenario, we can state that this problem of timing which is in regards with fiscal policy is mostly associated with the problem of administrative lag. The problem of administrative lag is most commonly referred to as or known as the time elapsed in between recognition of the problem or situation and therefore the correct action or preventive measures taken in order to solve or handle it.