Refer to the information provided in Figure 29.1 below to answer ...

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Question 1

Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.








Refer to Figure 29.1. Suppose it takes policy makers from time 
t
₂ to time 
t
₄ to take an action to stimulate the economy. This is an example of

◦ cyclical lag.
◦ recognition lag.
◦ implementation lag.
◦ response lag.

Question 2

Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.








Refer to Figure 29.1. Suppose it takes policy makers from time 
t
₂ to time 
t
₃ to see that the economy has started contracting. This is an example of

◦ a recognition lag.
◦ an implementation lag.
◦ a response lag.
◦ a policy lag.

[dellikani2015]

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