It is difficult to determine when the economy is turning up or down.This is because there is a(n)________ lag.
A) recognition
B) implementation
C) impact
D) countercyclical
E) automatic

Question

Quizplus · Accepted Answer

Recognition lag refers to the time it takes for economic data to be collected and analyzed before policymakers can identify a trend in the economy. Therefore, it can make it difficult to accurately determine whether the economy is turning up or down in real-time.

It Is Difficult to Determine When the Economy Is Turning