The recognition lag of stabilization policy represents
A) the time that is necessary to put the desired policy into effect.
B) the time needed for the Federal Reserve Board to meet.
C) the time that it takes for the economy to adjust to the new conditions after a new policy is introduced.
D) the time that it takes for policy makers to recognize a change in the economy.

Question

Quizplus · Accepted Answer

The recognition lag of stabilization policy refers to the delay between when an economic change occurs and when policymakers become aware of this change. This involves identifying and understanding the economic issue that needs addressing before any policy action can be taken.

The Recognition Lag of Stabilization Policy Represents