5. Label each of the following scenarios as an example of a recog- nition lag, administrative lag, or operational lag. LO13.5 a. To fight a recession, Congress has passed a bill to increase infrastructure spending-but the legally required environ- mental-impact statement for each new project will take at least two years to complete before any building can begin. b. Distracted by a war that is going badly, politicians take no notice until inflation reaches 8 percent. c. Politicians recognize a sudden recession, but it takes many months of political deal making before they finally approve a stimulus bill. d. To fight a recession, the president orders federal agencies to get rid of petty regulations that burden private businesses- but the federal agencies begin by spending a year developing a set of regulations on how to remove petty regulations.
5. Label each of the following scenarios as an example of a recog- nition lag, administrative lag, or operational lag. LO13.5 a. To fight a recession, Congress has passed a bill to increase infrastructure spending-but the legally required environ- mental-impact statement for each new project will take at least two years to complete before any building can begin. b. Distracted by a war that is going badly, politicians take no notice until inflation reaches 8 percent. c. Politicians recognize a sudden recession, but it takes many months of political deal making before they finally approve a stimulus bill. d. To fight a recession, the president orders federal agencies to get rid of petty regulations that burden private businesses- but the federal agencies begin by spending a year developing a set of regulations on how to remove petty regulations.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:5. Label each of the following scenarios as an example of a recog-
nition lag, administrative lag, or operational lag. LO13.5
a. To fight a recession, Congress has passed a bill to increase
infrastructure spending-but the legally required environ-
mental-impact statement for each new project will take
at least two years to complete before any building can
begin.
b. Distracted by a war that is going badly, politicians take no
notice until inflation reaches 8 percent.
c. Politicians recognize a sudden recession, but it takes many
months of political deal making before they finally approve a
stimulus bill.
d. To fight a recession, the president orders federal agencies to
get rid of petty regulations that burden private businesses-
but the federal agencies begin by spending a year developing
a set of regulations on how to remove petty regulations.
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