Classify each scenario according to the type of policy lag it illustrates. impact lag
implementation lag
recognition lag
Congress passes an immediate tax cut for all citizens, but it is another 24 months before GDP starts to climb once again. Press Space to open Economists determine that unemployment has skyrocketed several months after it began to rise. Press Space to open Congress approves a $100 million spending package, but officials need six months to determine which projects to finance. Press Space to open A bill proposing a tax cut is held up in Congress by a filibuster. Press Space to open The economy trends downward for two months, but economists are not sure if this signals the start of a recession. Press Space to open Government spending is cut by $100 billion, but inflation persists for another 12 months.