When data on the economy requires some time to gather and interpret, there is
A) an aggregate time lag.
B) an action time lag.
C) a recognition time lag.
D) an effect time lag.

Question

Quizplus · Accepted Answer

A recognition time lag is the delay in identifying changes in the economy due to the time required to gather and interpret data. The other options refer to different types of time lags that occur at different stages in the economic decision-making process.

When Data on the Economy Requires Some Time to Gather