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Essay text:
Time lags can adversely affect the efforts of the Congress and the President in attempting to maintain a healthy economy. There are three types of time lags: (Reem)
1. Recognition Time Lag: It usually is some time before we know when the economy has a decline or incline in activity. It also takes time to collect the information about the present situation of the economy. So, in other words the government is about 6 months behind the curve, when it comes to trying to jump-start the economy.
2. Action Time Lag: This is the time needed after acknowledging an economic problem and putting a policy into effect...
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