The _____ lag is the time it takes for policymakers to confirm that the economy is trending into or out of a recession.

Question

Quizplus · Accepted Answer

The recognition lag is the time it takes for policymakers to confirm that the economy is trending into or out of a recession. Option A, information lag, is the time it takes for policymakers to receive data on the current state of the economy. Option C, implementation lag, is the time it takes for policymakers to enact policies to address a recession once they have recognized it. Option D, decision lag, is not a commonly used term in this context.

The _____ Lag Is the Time It Takes for Policymakers