When data on the economy requires some time to gather and interpret, we have a(n)
A)aggregate time lag.
B)action time lag.
C)recognition time lag.
D)effect time lag.

Question

Quizplus · Accepted Answer

A recognition time lag refers to the time it takes for policymakers to recognize that changes in the economy have occurred, which can take some time to gather and analyze data. Aggregate time lag refers to the time it takes for changes in policy to affect the entire economy, while an action time lag refers to the time it takes policymakers to take action once they have recognized a problem. The effect time lag refers to the time it takes for changes in policy to have an actual effect on the economy.

When Data on the Economy Requires Some Time to Gather