Label each of the following scenarios as an example of a recognition lag, administrative lag, or operational lag.

a. To fight a recession, Congress has passed a bill to increase infrastructure spending—but the legally required environmental-

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.