Refer to the Information Provided in Figure 14

Multiple Choice

Refer to the information provided in Figure 14.1 below to answer the questions that follow. Figure 14.1
-Refer to Figure 14.1. Suppose it takes policy makers from time t₂ to time t₃ to see that the economy has started contracting. This is an example of

A) a recognition lag.
B) an implementation lag.
C) a response lag.
D) a policy lag.