Which of the following illustrates the data lag?
A) The economy turns down on January 8,2019,but policymakers do not figure this out until April 19,2019.
B) Policymakers wait and see what is really going on with the economy.
C) Policymakers implement policy X on September 12,2019,but the effects are not felt until six months later.
D) The data lag is illustrated equally well by a,b,and

Question

Quizplus · Accepted Answer

Data lag refers to the time between when an economic event occurs and when policymakers are able to collect and analyze data to assess the situation. Option A clearly illustrates a situation where there is a lag between when the economy turns down and when policymakers become aware of it. Option B does not illustrate data lag. Option C illustrates a policy lag, which is a different concept. Option D is incorrect because only option A clearly illustrates data lag.

Which of the Following Illustrates the Data Lag