| administrative lag | The time it takes for Congress and the president to agree on a course of action.
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| aggregate demand shock | An unexpected event which causes aggregate demand to increase or decrease.
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| aggregate supply shock | An unexpected event which causes aggregate supply to increase or decrease.
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| discretionary fiscal policy | Government spending and tax changes enacted at the time of the problem to alter the economy.
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| fiscal policy | The purposeful movements in government spending or tax policy designed to direct an economy
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| nondiscretionary fiscal policy | That set of policies that are built into the system to stabilize the economy
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| operational lag | The time it takes for the full impact of a governmental program or tax change to have its effect on the economy.
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| political business cycle | Politically motivated fiscal policy used for short-term gain just prior to elections.
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| recognition lag | The time it takes to measure the state of the economy.
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| shock | Any unanticipated economic event.
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2003 McGraw-Hill Higher Education