The recognition lag can best be described as Blank______.

Multiple choice question.

the lag between the fiscal action taken and the time that it affects output, employment, or prices during a recession or inflationary period

the lag that occurs between the recognition for fiscal action and the time action is taken during a recession or inflationary period

the lag between the monetary action taken and the time that it affects output, employment or the prices during a recession or inflationary period

the lag that occurs when an economy finds itself 4-6 months into a recession or inflation before the situation is clearly discernible

1 answer

The recognition lag can best be described as the lag that occurs between the recognition for fiscal action and the time action is taken during a recession or inflationary period.