A Recognition Lag Happens Because

question 110

Multiple Choice

A recognition lag happens because

• A) it takes time to recognize the true long-run growth rate in the economy.
• B) it is difficult to determine when the economy is turning up or down.
• C) in most nations,one or more governing bodies must approve government spending or new tax policies.
• D) it takes time for the complete effects of monetary and fiscal policy to materialize.
• E) it is difficult to recognize what the unemployment rate is.

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Definitions:

Protective Tariff

A tariff imposed on imports to protect domestic industries from foreign competition by increasing the cost of imported goods.

Internal Improvements

Government-funded public works, such as roads, bridges, and canals, aimed at improving the infrastructure and economic development of a nation.

Younger Federalists

Members of a younger generation within the Federalist Party, which was a first American political party advocating for a strong national government.