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 policy makers take an action at time t₂, the impact on the economy will not be at time t₂ because A) economic policies are ineffective. B) of the response lag. C) of the implementation lag. D) of the recognition lag.

Question

Quizplus · Accepted Answer

The impact on the economy will not be immediate due to the response lag, which is the time it takes for the policy action to have an effect on the economy.

Refer to the Information Provided in Figure 29