Related to the Economics in Practice on p. 590: The fact that recessions can be hard to forecast means that the
A) recognition lag is usually short.
B) recognition lag can be long.
C) implementation lag is usually short.
D) response lag is nonexistent.

Question

Quizplus · Accepted Answer

The recognition lag, or the time it takes for policymakers to recognize that a recession is occurring, can be long if recessions are hard to forecast. This can make it difficult for policymakers to implement timely and effective responses, leading to longer implementation lags and potentially longer overall response lags.

Related to the Economics in Practice on P