Fiscal policy is subject to various time lags that complicate its use. These include the recognition lag, the legislative lag, and the implementation lag. For each of the following scenarios, indicate whether it exhibits the recognition lag, the legislative lag, or the implementation lag. a. Congress takes two months to pass an extensive tax cut bill in response to a deep recession.
b. To counter a deep recession, Congress enacts a spending bill of public works projects that require several years to carry out.
c. The economy enters a deep recession at a time when quarterly data are showing positive economic growth.