Related to the Economics in Practice on p. 270: The fact that recessions can be hard to forecast means that the
A) recognition lag is usually short.
B) recognition lag can be long.
C) implementation lag is usually short.
D) response lag is nonexistent.

Question

Quizplus · Accepted Answer

The recognition lag refers to the time it takes for policymakers to recognize that a recession is occurring. Since recessions can be hard to forecast, policymakers may take longer to recognize a recession, resulting in a longer recognition lag. The implementation lag and response lag are not affected by the predictability of recessions.

Related to the Economics in Practice on P