CFA Practice Question

CFA Practice Question

With respect to discretionary changes in both monetary and fiscal policy, the time period necessary to gather and tabulate information about an economy's performance is best described as the:
A. impact lag.
B. recognition lag.
C. destabilization period.
Explanation: Because it takes time to gather reliable information about economic performance, a time period exists between an actual change in economic conditions and the recognition of the change by policymakers. This time period is called the recognition lag.

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