Refer to the information provided in Figure 15.1 below to answer the questions that follow.
Figure 15.1
-Refer to Figure 15.1.Suppose it takes policy makers from time t₂ to time t₃ to see that the economy has started contracting.This is an example of

Question

Refer to the information provided in Figure 15.1 below to answer the questions that follow.

Figure 15.1
-Refer to Figure 15.1.Suppose it takes policy makers from time t₂ to time t₃ to see that the economy has started contracting.This is an example of

Quizplus · Accepted Answer

A recognition lag is the delay between when an economic problem begins and when policymakers recognize it. In this case, it takes policymakers from time t₂ to time t₃ to recognize that the economy has started contracting, indicating a recognition lag.

Refer to the Information Provided in Figure 15