The time period between the first drop in output and the realization that an economy is in a recession is referred to as the _____ lag.
A) implementation
B) countercyclical
C) impact
D) recognition

Question

Quizplus · Accepted Answer

The recognition lag refers to the time it takes for policymakers to recognize that an economy is in a recession following the initial signs of economic downturn, such as a drop in output.

The Time Period Between the First Drop in Output and the Realization