Question

Although fiscal policy may theoretically achieve the desired result in an economy, the time it takes for it to be approved and implemented, known as

Answer 1

The appropriate answer is "time lag".

Step-by-step explanation:

• The time taken towards enacting a program after it has been accepted is referred to those as time lag. The consequences of interventions are not necessarily recognized throughout the economy due to various time lags.
• Therefore, although monetary policy, described as time lag, will potentially produce the expected outcome during an economy, the time it would take to be accepted as well as enforced.