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 policy makers take an action at time t4,the impact on the economy will not be at time t4 because
A)economic policies are ineffective.
B)of the recognition lag.
C)of the implementation lag.
D)of the 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 policy makers take an action at time t4,the impact on the economy will not be at time t4 because
A)economic policies are ineffective. 
B)of the recognition lag. 
C)of the implementation lag. 
D)of the response lag.

Quizplus · Accepted Answer

The impact of policy action takes time to filter through the economy, which is known as the response lag. The recognition lag refers to the time it takes for policymakers to realize that there is a problem in the economy, while the implementation lag is the time it takes to put a policy into action.

Refer to the Information Provided in Figure 15