Final answer:
Yes, after a recognition lag, policymakers become aware of economic problems and propose fiscal policy bills to address them, making the statement true.
Step-by-step explanation:
After a recognition lag, policymakers do indeed become aware of economic downturns and propose fiscal policy bills. The statement provided is true. Recognition lag refers to the time between when an economic problem starts and when it is recognized by policymakers.
Once they acknowledge the issue, they begin the process of creating and proposing legislation to mitigate the effects, usually through changes in government spending or taxation. This phase leads into other lags such as legislative lag, which encompasses the time taken for a bill to go through Congress and receive the president's signature, and the implementation lag, which is the time required to distribute funds and initiate projects as per the new policy.
The statement that policymakers become aware of the problem and propose fiscal policy bills after a recognition lag is false.
The recognition lag refers to the time it takes for policymakers to recognize that a recession has occurred. After the recognition lag, policymakers may propose fiscal policy bills, but this does not happen immediately. There are additional time lags such as the legislative lag and implementation lag.