The time span between the beginning of a downturn and the time taken to gather enough data to indicate a downturn is called _____.
A)the display lag
B)the implementation lag
C)the impact lag
D)the recognition lag
E)the decision lag

Question

Quizplus · Accepted Answer

The recognition lag refers to the time it takes to gather enough data to indicate a downturn, during which indicators of the economy's performance may not yet reveal that the economy is slowing down. The impact lag refers to the time it takes for changes in policy to have an effect on the economy, while the implementation lag and decision lag refer to the time it takes policymakers to make and implement decisions, respectively. The display lag is not a commonly used term in economics.

The Time Span Between the Beginning of a Downturn and the Time