The Time Between Which an Economic Shock Is Recognized and When

question 177

Multiple Choice

The time between which an economic shock is recognized and when the government passes a plan to carry out a policy response is called the:

• A) recognition lag.
• B) legislative lag.
• C) effectiveness lag.
• D) adjustment lag.

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Definitions:

Party to a Check

Individuals or entities involved in the transaction of a check, including the drawer, payee, and sometimes an endorser.

Maker

In financial terms, the party that creates or issues a promissory note or draft, committing to pay the specified amount.

Bank Statement

A record issued by a bank detailing all transactions in a depositor's account over a given period.

Depositor's Account

An account maintained by a bank or financial institution for the depositor, recording the amount of money deposited.