Suppose a recession surprises economic forecasters who did not see it coming.This is an example of a _____.
A)cyclical lag
B)recognition lag
C)decision-making lag
D)implementation lag
E)effectiveness lag

Question

Quizplus · Accepted Answer

A recognition lag occurs when economic data indicates a significant change in the economy, but it takes some time for economists to recognize the change and adjust their forecasts accordingly. In this scenario, the recession was not predicted, indicating a recognition lag.

Suppose a Recession Surprises Economic Forecasters Who Did Not See