Question

please answer! 1. The Problem with administrative lag is that: a. it us difficult to know...

please answer!
1. The Problem with administrative lag is that:
a. it us difficult to know when a recession began when youre in the middle of it.
b. when new representatives are elected they often bring new policies
c. representative governments are slow to take action
d. increases in spending take time to move through the economy
2. so long as government can refinance their treasury securities (at a reasonable rate of interest) bankruptcy is not a concern of economists
a. true
b. false

Homework Answers

Answer #1

1> c. representative governments are slow to take action

Reason

Administrative lag is the delay in the time of action of the government. So, that is the problem of the administrative lag.

2> False

Reason

Even if the government is able to refinance the treasury securities at a reasonable rate, there maybe other fundamental issues with the government which means that there maybe some problem in the economy and thus, it might still be a concern and the government may go bankurpt in future.

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