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.

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."