A Recognition Lag Is

question 141

Multiple Choice

A recognition lag is

• A) the time it takes to see if that there has been a shock to the economy.
• B) the time it takes the Fed or Congress to change economic policy.
• C) the time it takes for a new economic policy to affect behavior in the economy.
• D) none of the above

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An accounting practice of postponing the recognition of expenses or revenues to a future period, rather than recording them in the period they occur.

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