ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The response lag is the period between the time a monetary or fiscal policy change is implemented and the time an economic impact is felt. Such policies are often instituted in response to a devastating economic effect, or to help support the economy at a certain point in the economic cycle.

Detailed explanation-2: -The effectiveness lag is the period between implementing an action to counteract another in the economy and the attainment of a substantial effect or impact. It takes place when a policy has already been implemented upon the identification of economic concern and the effect is awaited.

Detailed explanation-3: -The effect lag is the amount of time between the time action is taken and an effect is realized. Monetary policy involves longer delays than fiscal policy; the time between a change in monetary policy and its ultimate effect on private investment may be between one…

Detailed explanation-4: -IMPACT LAG: The time lag that occurs between the implementation of a government policy designed to correct an economic problem and the complete impact of the policy. The impact lag is based on the multiplier process and can last up to a year or two or even longer.