The economy begins to enter a recession, but it is several months before this is reflected in the statistics on GDP. This is an example of
A)a data lag.
B)an impact lag.
C)an implementation lag.
D)a legislative lag.

Question

Quizplus · Accepted Answer

A data lag is a delay in the release of economic data, which can result in a gap between when an economic event occurs and when it is reflected in the statistics. In this case, the economy has entered a recession, but the statistics on GDP, which are used to officially declare a recession, have not yet shown a decline. This delay is an example of a data lag.

The Economy Begins to Enter a Recession, but It Is