Once the government passes a bill to respond to a recession, it takes some time to disperse the funds to the appropriate agencies to start the programs. Economists call this time to start the projects the .

implementation lag

Explanation:

The implementation lag is Implementation lag is the delay between an macroeconomic event that has an adverse effect on the economy and the implementation of either a fiscal or a monetary policy to correct the situation by the central bank or the government.

Once the government passes a bill to respond to a recession, it takes some time to disperse the funds to the appropriate agencies to start the programs. Economists call this time to start the projects the implementation lag.

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