One timing problem with fiscal policy to counter a recession is a "recognition lag" that occurs between the:

A. Start of the recession and the time it takes to recognize that the recession has started

B. Start of a predicted recession and the actual start of the recession

C. Time fiscal action is taken and the time that the action has its effect on the economy

D. Time the need for the fiscal action is recognized and the time that the action is taken

Question

Business

Felix Rojas

2 June, 08:57

One timing problem with fiscal policy to counter a recession is a "recognition lag" that occurs between the:

A. Start of the recession and the time it takes to recognize that the recession has started

B. Start of a predicted recession and the actual start of the recession

C. Time fiscal action is taken and the time that the action has its effect on the economy

D. Time the need for the fiscal action is recognized and the time that the action is taken

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Answers (1)

Know the Answer?

Rolando Perkins · Answer 1

The correct answer is A

Explanation:

Recognition lag is the lag where there is time delay among when an economic shock like a bust or a sudden boom occurs and it is to be recognized by the central bankers, government and economists.

It is the timing problem with the fiscal policy for counter a recession is the recognition lag which occurs among the beginning of the recession and the time which it takes to acknowledge the recession which has started.