Multiple Choice Question

Question

Following the terrorist attacks of September 11, 2001, the U.S. Congress was stalemated for five months before passing a compromise economic stimulus law in March 2002. This is an example of what?
Multiple choice question.

The recognition lag

The administrative lag

The operational lag

Answer 1

This is an example of the administrative lag.

The administrative lag refers to the time it takes for policymakers to respond to an economic problem with legislation and implementation, which includes the time it takes to recognize the problem, create a plan, and put that plan into action. In this case, the five-month delay before passing the economic stimulus law reflects the administrative lag.