A recognition lag is
A) the time it takes to see if that there has been a shock to the economy.
B) the time it takes the Fed or Congress to change economic policy.
C) the time it takes for a new economic policy to affect behavior in the economy.
D) none of the above

Question

Quizplus · Accepted Answer

A recognition lag refers to the period it takes for policymakers to realize that an economic shock has occurred. This is distinct from the time it takes to implement or for policies to take effect, which are referred to as implementation and impact lags, respectively.

A Recognition Lag Is