The action time lag is the time period that elapses
A) between when an economic problem manifests itself and it is officially acknowledged.
B) between the recognition of an economic problem and implementing policies to solve it.
C) between implementing policies to solve an economic problem and when the results of that policy can be measured.
D) between the beginning of the budgetary process and the final budget resolution.

Question

Quizplus · Accepted Answer

The action time lag refers to the delay between recognizing an economic problem and implementing policies to solve it. Option B accurately describes this delay. Option A refers to a different type of lag called the recognition time lag. Option C refers to the impact time lag, which is the delay between implementing policies and seeing their results. Option D is unrelated to the concept of the action time lag.

The Action Time Lag Is the Time Period That Elapses