The Recognition Time Lag Is the Time Between

question 31

Multiple Choice

The recognition time lag is the time between

• A) when an economic problem manifests itself and it is officially acknowledged.
• B) the recognition of an economic problem and implementing policies to solve it.
• C) implementing policies to solve an economic problem and when the results of that policy can be measured.
• D) the beginning of the budgetary process and the final budget resolution.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy.

Consumer Spending

The aggregate spending of families within an economy on goods and services.

45-Degree Line

A reference line in economics, usually on a graph, where all points along the line indicate where the values for the variables on the axes are equal.

Consumer Dollar

The purchasing power of a consumer's money, indicating the quantity of goods and services it can buy.