A response 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

Response lag refers to the time it takes for a change in economic policy to affect behavior in the economy. This can be due to various factors such as communication delays, market inefficiencies, and resistance to change. It is different from recognition lag (time to realize there has been a shock), decision lag (time to decide on policy action), and implementation lag (time to enact policy changes).

A Response Lag Is