The recognition lag refers to the:
A) time taken for changes in the money supply to be translated into changes in real
GDP)
B) time taken by policymakers to formulate an appropriate policy to solve an
Economic problem.
C) time taken by policies to have an impact on the different macroeconomic variables.
D) time taken by policymakers to recognize that an economic problem exists.
E) natural difference between monetary policy timing and fiscal policy timing.

Question

Quizplus · Accepted Answer

The recognition lag refers to the time taken by policymakers to recognize that an economic problem exists. It is the first stage in the policymaking process and involves identifying and defining the nature and extent of the problem before any policy measures can be taken.

The Recognition Lag Refers to The