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Question #47706

The response lag of stabilization policy represents ?

Options:

A) the time that it takes for policy makers to recognize the existence of boom of bust

B) the time needed for parliament to agree to a tax cut.

C) the time that is necessary to put the desired policy into effect

D) the time that it takes for the economy to adjust to the new conditions after a new policy has been implemented

Answer: The response lag of stabilization policy represents the time that it takes for the economy to adjust to the new conditions after a new policy has been implemented.

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