Multiple Choice
Which of these illustrates the information lag?
A) Real GDP, an indicator of economic growth, is predicted to increase by 0.1% in July, but the numbers are revised in August to reflect an actual 2% decrease.
B) Current data have been provided to policymakers, but they decide to wait and see what happens in the next quarter.
C) The government responds to the 2% decrease in real GDP, and private investment is crowded out of the investment market.
D) The government decides not to respond to the 2% decrease in real GDP because it is worried about the possibility of inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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