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. If the condition of the economy at point E is realized by policy makers when the economy is at point G, policy is likely to be inappropriate due to

A) crowding out.
B) the recognition lag.
C) the implementation lag.
D) the response lag.