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01.07.2020 •
Business
Label each of the following examples of fiscal policy lags: Legislative lag, Recognition lag, Implementation lagIn December 2008, the Business Cycle Dating Committee of the National Bureau of Economic Research determined that the U.S. economy had been in recession since the fourth quarter of 2007 (when economic activity peaked).President George W. Bush released his tax relief agenda in February 2001. Following the debate in Congress, The Economic Growth and Tax Relief Reconciliation Act was signed into law in June 2001.In September 1959, President Dwight D. Eisenhower signed the Federal Employees Health Benefits Act, which established a voluntary health insurance plan for approximately two million employees and their dependents, with costs to be shared by the Federal Government and the employees. The Act became effective in July 1960.
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Ответ:
1. In December 2008, the Business Cycle Dating Committee of the National Bureau of Economic Research determined that the U.S. economy had been in recession since the fourth quarter of 2007 (when economic activity peaked) Recognition Lag.
A Recognition Lag happens when it takes time for entities to realise that something has or is happening. The Business Cycle Dating Committee only realised a full year later that the US economy had been in recession.
2. President George W. Bush released his tax relief agenda in February 2001. Following the debate in Congress, The Economic Growth and Tax Relief Reconciliation Act was signed into law in June 2001. Legislative Lag.
Legislative Lag occurs due to the time it takes for the legislative to pass laws that the Executive introduce to them. This is usually down to the need to argue these laws in both houses before they can be passed. President Bush released his agenda in February 2001 and it only got passed in June.
3. In September 1959, President Dwight D. Eisenhower signed the Federal Employees Health Benefits Act, which established a voluntary health insurance plan for approximately two million employees and their dependents, with costs to be shared by the Federal Government and the employees. The Act became effective in July 1960. Implementation Lag.
An implementation lag comes about when there is a time delay between the passing of a law and the implementation of said law. President Eisenhower in this instance signed the act in September 1959 but it was only implemented 10 months later in July 1960.
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