Fiscal Policy Limits

You're driving a car. Trouble is, there's a time lag whenever you hit the accelerator or the brakes. And, sometimes they don't work at all.

For example, you do not know how much time will elapse between the moment you hit the brakes and the car starts to slow down.

Question: How will that affect your driving? Answer: You will want to drive the car as steadily as possible.

Government fiscal policy is like that.