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A government has found that 1.51.5 months elapse before it can identify a proble

ID: 1139376 • Letter: A

Question

A government has found that

1.51.5

months elapse before it can identify a problem to address with a policy action. It has found that

2.02.0

months are required to determine the appropriate policy action. Finally, it has concluded that the total time required between the initial presence of the problem and the effects of a policy action to be realized is

2323

months. What is the remaining policy time lag and its duration?The

1.51.5

months that elapse before the problem can be identified is called the

action

effect

recognition

time lag. The

2.02.0

months between the recognition of the problem and the implementation of policy to solve it is called the

recognition

effect

action

time lag. The time it takes for the policy to affect the economy is called the

action

recognition

effect

time lag. Since the total time required between the initial presence of the problem and the effects of a policy action to be realized is

2323

months, the duration of the effect time lag is

nothing months. (Enter your response rounded to one decimal place.)

Explanation / Answer

(1) Remaining policy lag (Months) = 23 - 2 - 1.5 = 19.5

(2) The 1.5 months is called the Recognition time lag.

(3) The 2 months is the Action time lag (also called Implementation time lag).

(4) The time it takes to affect the economy is the Effect time lag.

(5) Duration of effect time lag is 19.5 months [as computed in (1)].