The ________ lag is the time it takes for policymakers to be sure of what the information is signaling about the future course of the economy,while the ________ lag is the time it takes for policymakers to change policy instruments once they have decided on the new policy.
A)recognition; implementation
B)recognition; legislative
C)data; legislative
D)data; implementation

Question

Quizplus · Accepted Answer

The recognition lag refers to the time it takes for policymakers to recognize the need for a change in policy based on economic data. The implementation lag, on the other hand, refers to the time it takes for policymakers to put their new policy into action. Therefore, option A accurately describes the two different lags.

The ________ Lag Is the Time It Takes for Policymakers