The government collects data on economic activity but is only able to conﬁrm either a slowdown or an increase in economic activity three to six months after the event. This problem is known as _____.
A) a time lag
B) an offsetting change
C) crowding out
D) a destabilizer

Question

Quizplus · Accepted Answer

A time lag refers to the delay between when an economic event occurs and when it is officially recognized or measured, which is the issue described in the scenario.

The Government Collects Data on Economic Activity but Is Only