A recognition lag happens because
A) it takes time to recognize the true long-run growth rate in the economy.
B) it is difficult to determine when the economy is turning up or down.
C) in most nations,one or more governing bodies must approve government spending or new tax policies.
D) it takes time for the complete effects of monetary and fiscal policy to materialize.
E) it is difficult to recognize what the unemployment rate is.

Question

Quizplus · Accepted Answer

Recognition lag occurs because it is challenging to identify the precise moment when the economy is shifting from expansion to contraction or vice versa.

A Recognition Lag Happens Because