The ________ lag is the time it takes for policymakers to obtain the data that tell them what is happening to the economy,while the ________ lag is the time it takes for policymakers to be sure of what the data are signaling about the future course of the economy.
A)data; recognition
B)recognition; data
C)data; implementation
D)implementation; recognition

Question

Quizplus · Accepted Answer

The first blank refers to the time it takes for policymakers to obtain information or data about the current state of the economy, so the best choice is A (data). The second blank refers to the time it takes for policymakers to interpret the data and determine the best course of action, so the best choice is recognition. Therefore, the correct answer is A.

The ________ Lag Is the Time It Takes for Policymakers