In an effort to stabilize the U.S. economy, and the may enact policy measures from time to time. The two fiscal policy tools used are and If the economy is sluggish, they may choose to enact fiscal policy measures which would involve and/or If the economy is growing too fast and inflation is rising, they may choose to enact fiscal policy measures which would involve and/or Unfortunately, it takes time to enact fiscal policy due to time lags. There are three types of time lags: time lag which is the time it takes to realize that a recession is looming or has already occurred, time lag which is the time it takes to get a fiscal policy bill passed, and time lag which is the time it takes for the funds relating to fiscal policy to be dispersed to the appropriate agencies that are responsible for implementing the programs