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 policy makers take an action at time t₂, the impact on the economy will not be at time t₂ because A) economic policies are ineffective. B) of the response lag. C) of the implementation lag. D) of the recognition lag.

Question

Quizplus · Accepted Answer

The impact on the economy will not be immediate due to the response lag, which is the time it takes for the economy to react to the policy action.

Refer to the Information Provided in Figure 14