The __________ lag refers to the problem of getting an accurate fix on what is happening in the economy.
A) recognition
B) realization
C) impact
D) None of the above.

Question

Quizplus · Accepted Answer

The recognition lag is the time it takes for policymakers to realize that an economic problem exists. It refers to the delay between when an economic problem actually begins and when it is recognized by economists or policymakers. This delay often occurs due to the time it takes to gather and analyze economic data. Therefore, the recognition lag can make it difficult to get an accurate fix on what is happening in the economy.

The __________ Lag Refers to the Problem of Getting an Accurate