What Are the Three Types of Monetary Policy Lags

question 77

Multiple Choice

What are the three types of monetary policy lags?

• A) the recognition lag, the identification lag, and the implementation lag
• B) the recognition lag, the inflation lag, and the impact lag
• C) the recognition lag, the implementation lag, and the government lag
• D) the recognition lag, the implementation lag, and the impact lag

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Definitions:

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and reporting data on employment, labor market activity, working conditions, and price changes.

Average Workweek

The average number of hours worked per week by employees in a specific sector or economy.

Natural Rate

The long-term rate of unemployment around which the job market is in balance, where all those willing to work at prevailing wage rates can find employment.

Policymakers

Individuals or groups responsible for making decisions and creating policies for political, economic, or social systems.