The time that elapses between the beginning of a recession or an inflationary episode and the identification of the macroeconomic problem is referred to as a(n)
A)budget lag.
B)recognition lag.
C)operational lag.
D)administrative lag.

Question

Quizplus · Accepted Answer

Recognition lag is the time it takes for policymakers to identify and confirm that a macroeconomic problem, such as a recession or inflation, is occurring.

The Time That Elapses Between the Beginning of a Recession