Answer:
1. information lag
2. recognition lag
3. decision lag
4. implementation lag
Explanation:
Using fiscal policy to aid the economy in achieving full employment, stable prices, and persistent economic growth can be difficult due to several lags associated with its implementation.
First, economic data must be gathered, tabulated, and reported (information lag). Second, policymakers must attempt to make certain that the economy is trending in or out of a recession (recognition lag). Third, decisions must be made as to what fiscal policy mechanisms will be used (decision lag). Fourth, the policy must have time to be turned into law and have an actual impact on the economy (implementation lag).
In this question, Keynesian lag, fiscal lag, and presidential lag (three of the item choices) are not actual definable fiscal policy lags.
