Refer to the Information Provided in Figure 14

Multiple Choice

Refer to the information provided in Figure 14.2 below to answer the questions that follow. Figure 14.2
-Refer to Figure 14.2. If the economy is currently at Point B and policy makers implement a policy which shifts the aggregate demand curve to AD₁, the time the economy needs to make the adjustment is known as the

A) implementation lag.
B) recognition lag.
C) response lag.
D) frictional lag.