What made the timing of the fiscal policy response to the COVID-19 recession unusual?
Multiple choice question.
The recognition, administrative, and operational lags were all very short.
The recognition lag was very long, but the administrative and operational lags were short.
The recognition, administrative, and operational lags were all exceptionally long.
The recognition lag was essentially zero, but the administrative and operational lags became very long.
1 answer
The correct answer is:
The recognition lag was essentially zero, but the administrative and operational lags became very long.
This reflects the rapid acknowledgment of the economic impact due to the pandemic, despite the complexity and time required to implement fiscal responses.
