A recognition lag happens because: a. it is difficult to determine when the economy is turning up or down. b. it takes time to recognize the true long-run growth rate in the economy. c. in most nations, one or more governing bodies must approve government spending or new tax policies. d. it takes time for the complete effects of monetary and fiscal policy to materialize. e. it is difficult to recognize what the unemployment rate is.

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.