label the scenarios with the type of monetary policy lag represented by each.
1.) Despite the numerous data trends suggesting a recession, the FOMC waits until their monthly scheduled meeting to change the direction of the economy.
2.) Significant revisions to quarterly GDP data and monthly unemployment data delay the identification of the start of a recession.
3.) Data on GDP is released quarterly, meaning that an economic downturn beginning in January may not be identified until more than three months later.
4.) Once the Federal reserve lower interest rates, businesses an consumers are slow to increase borrowing as a result.
Recognition lag, Information lag, Decision lag, implementation lag