Suppose that a recession begins on January 15, 2017, and that by the time the government receives the data on the economy and realizes that the economy is in a recession, it is March 15, 2017. In this case, the two months in between these two dates is known as the _____ lag.

Question

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The time it takes for policymakers to recognize that the economy is in a recession is known as the recognition lag. This lag occurs because it takes time to collect, process, and interpret economic data.

Suppose That a Recession Begins on January 15, 2017, and That