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
A)a recognition lag.
B)an implementation lag.
C)a response lag.
D)a policy 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.Suppose it takes policy makers from time t2 to time t3 to see that the economy has started contracting.This is an example of
A)a recognition lag. 
B)an implementation lag. 
C)a response lag. 
D)a policy lag.

Quizplus · Accepted Answer

A recognition lag occurs when policymakers take time to recognize that the economy has entered a recession. In this scenario, it takes policymakers from time t2 to time t3 to recognize that the economy has started contracting, which matches the definition of a recognition lag.

Refer to the Information Provided in Figure 15