One timing problem with fiscal policy to counter a recession is a “recognition lag” that occurs between the:

A.Start of a predicted recession and the actual start of the recession
B.Start of the recession and the time it takes to recognize that the recession has started
C.Time fiscal action is taken and the time that the action has its effect on the economy
D.Time the need for the fiscal action is recognized and the time that the action is take

ANSWER:

B.Start of the recession and the time it takes to recognize that the recession has started