In September 2013, the Federal Open Market Committee said it would wait for more evidence that progress had been made on the economic recovery before it cut back on open market purchases. The Bureau of Economic Analysis did not release its advanced estimate of the third quarter's GDP growth until a month after the quarter ended. The second estimate was released two months after the quarter ended, and a third revised estimate was released about three months after the quarter ended. This wait for accurate data to be collected is known as the _____ lag.

Question

Quizplus · Accepted Answer

The delay in obtaining accurate, up-to-date economic data before making policy decisions is referred to as the information lag. This lag occurs because it takes time to collect, analyze, and publish economic data such as GDP growth rates.

In September 2013, the Federal Open Market Committee Said It