Final answer:
Typical time lags for fiscal policy tend to be longer than for monetary policy due to several stages including recognition, legislative, and implementation lags. Monetary policy can be enacted more quickly but also has an impact lag, making its exact timing uncertain.
Step-by-step explanation:
The question asks whether the typical time lag for fiscal policy is likely to be longer or shorter than the time lag for monetary policy. A time lag in economic policy refers to the period between the implementation of policy and the resulting effect on the economy. Fiscal policy, which includes government spending and taxation decisions, is typically subject to several types of lags: the recognition lag, the legislative lag, and the implementation lag. As such, it usually takes much longer for fiscal policy to take effect compared to monetary policy.
Monetary policy, managed by the central bank, can be adjusted several times within a year and its effects may be felt more quickly. The central bank's decisions on interest rates and money supply can have immediate effects on borrowing costs, although the full impact on the economy, known as the impact lag, may still take several months to materialize. The uncertainty in the duration of impact lag can make the effects of monetary policy somewhat unpredictable in their timing.