Suppose a recession surprises economic forecasters,who did not see it coming.Which type of lag is that?
A)cyclical lag
B)recognition lag
C)decision-making lag
D)implementation lag
E)effectiveness lag

Question

Quizplus · Accepted Answer

A recognition lag refers to the time it takes for economic forecasters or policymakers to identify that a recession has occurred. In this scenario, the fact that the recession was not predicted suggests that there was a delay in recognizing its existence. A cyclical lag refers to the time it takes for the economy to move through the phases of the business cycle, and the other lags refer to delays in decision-making or implementation, which are not applicable in this situation. An effectiveness lag refers to a delay in seeing the full impact of policy changes.

Suppose a Recession Surprises Economic Forecasters,who Did Not See It