Refer to the information provided in Figure 29.1 below to answer the question(s) that follow. Figure 29.1
-Refer to Figure 29.1. If the economy is actually at Point C but policy makers think that it is still at Point B, this is an example of
A) economic policies ineffectiveness.
B) recognition lag.
C) implementation lag.
D) response lag.

Question

Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.  Figure 29.1
-Refer to Figure 29.1. If the economy is actually at Point C but policy makers think that it is still at Point B, this is an example of
A) economic policies ineffectiveness. 
B) recognition lag. 
C) implementation lag. 
D) response lag.

Quizplus · Accepted Answer

This is an example of recognition lag, as policy makers have not recognized that the economy has already reached Point C and are still basing their decisions on the assumption that it is at Point B.

Refer to the Information Provided in Figure 29