The amount of time that it takes to identify a national economic problem is
A) fiscal policy.
B) the recognition time lag.
C) the effect time lag.
D) the action time lag.

Question

Quizplus · Accepted Answer

The recognition time lag refers to the time it takes for policymakers and economists to identify and acknowledge the existence of a national economic problem. This can take some time as it requires gathering and analyzing economic data and trends. Once the problem is recognized, policymakers can begin to address it through fiscal policy (A), but there will still be additional time lags (effect time lag and action time lag) before the policy's impact is felt on the economy.

The Amount of Time That It Takes to Identify a National