Refer to the information provided in Figure 15.1 below to answer the questions that follow.
Figure 15.1
-Refer to Figure 15.1.If the economy is actually at Point C but policy makers think that it is still at Point B,this is an example of
A)economic policies ineffectiveness.
B)recognition lag.
C)implementation lag.
D)response lag.

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.If the economy is actually at Point C but policy makers think that it is still at Point B,this is an example of
A)economic policies ineffectiveness. 
B)recognition lag. 
C)implementation lag. 
D)response lag.

Quizplus · Accepted Answer

This is an example of recognition lag, which refers to the delay in policymakers recognizing the true state of the economy. In this case, they have not yet recognized that the economy has moved from Point B to Point C. This can lead to ineffective policy decisions if policies are based on outdated information.

Refer to the Information Provided in Figure 15