The operational lag of fiscal policy refers to the time which elapses between the beginning of a recession or inflation and the certain awareness that it is actually happening.

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The operational lag of fiscal policy refers to the delay between the implementation of a fiscal policy measure and its actual impact on the economy. The time between the beginning of a recession or inflation and the certain awareness that it is actually happening is referred to as the recognition lag.

The Operational Lag of Fiscal Policy Refers to the Time