Refer to the information provided in Figure 14.1 below to answer the questions that follow. Figure 14.1
-Refer to Figure 14.1. If the economy is actually at Point G but policy makers think that it is still at Point E, this is an example of
A) economic policies ineffectiveness.
B) response lag.
C) implementation lag.
D) recognition lag.

Question

Refer to the information provided in Figure 14.1 below to answer the questions that follow.  Figure 14.1
-Refer to Figure 14.1. If the economy is actually at Point G but policy makers think that it is still at Point E, this is an example of
A) economic policies ineffectiveness. 
B) response lag. 
C) implementation lag. 
D) recognition lag.

Quizplus · Accepted Answer

This situation is an example of recognition lag, where policy makers do not immediately recognize the current state of the economy. Economic policies ineffectiveness refers to policies that do not achieve their desired outcomes. Response lag refers to the time it takes for policies to have an effect on the economy. Implementation lag refers to the time it takes for policies to be put in place after they are decided upon. None of these concepts accurately describe the scenario presented in the question.

Refer to the Information Provided in Figure 14