Suppose a Recession Surprises Economic Forecasters

question 5

Multiple Choice

Suppose a recession surprises economic forecasters.Which term refers to the time it takes forecasters to recognize the recession?  

• A) recognition lag 
• B) decision-making lag 
• C) implementation lag 
• D) effectiveness lag

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Definitions:

Random Events

Outcomes or occurrences that are unpredictable and determined entirely by chance.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, with 1 indicating certainty.

Tree Diagram

A diagram used to show the total number of possible outcomes in a probability experiment.

Simple Events

A simple event is an outcome or event that cannot be further broken down into simpler components within the context of a probability experiment.