The time it takes for policy makers to be sure of what the data are signaling about the future course of the economy is called
A)the data lag.
B)the recognition lag.
C)the legislative lag.
D)the implementation lag.
E)the effectiveness lag.

Question

Quizplus · Accepted Answer

The time it takes policymakers to recognize what the data are indicating about the future course of the economy is called the recognition lag. This is the time between when an economic shock or event occurs, and when it is recognized by policymakers who then take action to address it. The other lags listed are related to different stages in the policy-making process, but do not specifically refer to the time it takes for policymakers to interpret economic data.

The Time It Takes for Policy Makers to Be Sure