The time required to acquire information about the state of the economy is known as
A) the action lag.
B) the recognition lag.
C) the effect lag.
D) the data lag.

Question

Quizplus · Accepted Answer

The recognition lag refers to the time it takes for policymakers to recognize that there has been a change in the economy's condition. This involves collecting and analyzing economic data, which can take time, hence the delay in recognizing shifts in economic trends.

The Time Required to Acquire Information About the State of the Economy