Which of the following best describes the impact lag?
A)the time it takes for policymakers to recognize that economic conditions have changed and that a policy change is necessary
B)the time that elapses from when the need for action is recognized to when the policy adjustment is enacted
C)the time from when the policy action is taken until there is a significant effect on the economy
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The impact lag refers to the time that elapses from when a policy action is taken until there is a significant effect on the economy. Option A describes recognition lag, while option B describes implementation lag. Option D is incorrect as one of the options is correct.

Which of the Following Best Describes the Impact Lag