Which Lag Stems from the Fact That It Takes Time

question 98

Multiple Choice

Which lag stems from the fact that it takes time for people and firms to react to a policy change, to acquire or reduce loans, and to change their level of consumption?

• A) the implementation lag
• B) the recognition lag
• C) the market lag
• D) the impact lag

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Definitions:

Fluid Intelligence

Refers to the ability to think logically and solve problems in novel situations, independent of acquired knowledge.

Age

The length of time that an individual has lived or a thing has existed, typically measured in years.

Previously Developed Abilities

pertains to skills and capabilities that have been acquired and honed through past experiences and learning.

Enhanced

Improved or augmented in quality, value, or effectiveness.