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,while the ________ lag represents the time it takes to pass legislation to implement a particular (fiscal)policy.
A)data; recognition
B)recognition; legislative
C)data; legislative
D)implementation; legislative

Question

Quizplus · Accepted Answer

The recognition lag is the time it takes for policymakers to understand what the data indicates about the economy's future, while the legislative lag is the time needed to pass laws to enact a fiscal policy.

The ________ Lag Is the Time It Takes for Policymakers