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 G but policy makers think that it is still at Point E, this is an example of
A) economic policies ineffectiveness.
B) response lag.
C) implementation lag.
D) recognition 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 G but policy makers think that it is still at Point E, this is an example of
A) economic policies ineffectiveness. 
B) response lag. 
C) implementation lag. 
D) recognition lag.

Quizplus · Accepted Answer

This is an example of recognition lag, which is the delay in recognizing a change in the economy's condition. Policy makers are operating under the assumption that the economy is at Point E, which means they are not taking into account the actual state of the economy at Point G. This delay in recognition can lead to ineffective or inappropriate policy responses.

Refer to the Information Provided in Figure 29