Question

The lag between the time that the need for fiscal action is recognized and the time action is actually taken is referred to as the?

Answer 1

Answer: Administrative lag

Explanation:

Administrative lag is defined as the lag of time that occurs between any issue identification and measure take to handle and correct the problem by finding solution.

In terms of economic field, the time required to recognize and realize the change in tax and the time to enact on those modification. This time gap is known as administrative lag.