The problem of time lags in enacting and applying fiscal policy is that

Question

Rohan Sharp

Social Studies

1 April, 09:52

The problem of time lags in enacting and applying fiscal policy is that

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Answers (1)

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Jovani Crane · Answer 1

in the time it takes to identify the situation, enact a policy, and allow it to work, economic circumstances may have changed.

Explanation:

Fiscal policies would be specifically designed to address one particular economic condition.

When there are time lags in enacting and applying fiscal policy, the economic condition in the country could also be changed. Because of this, by the time the policies are enacted, they are no longer suitable to solve the problem that arise on the current economic condition.