Etymology
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lag (v.)

"move slowly, fail to keep pace," 1520s, earlier as a noun meaning "last person" (1510s), later also as an adjective, "slow, tardy, coming behind" (1550s, as in lag-mon "last man"). All are of uncertain relationship and origin, possibly from a Scandinavian source (compare Norwegian lagga "go slowly"), or some dialectal version of last, lack, or delay. Related: Lag; lagging.

lag (n.)

in the mechanical sense "retardation of movement," 1855, from lag (v.). Also noted in Farmer and Henley ("Slang and Its Analogues") as American theatrical slang for "a wait," with an attestation from 1847. First record of lag time is from 1951.

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Definitions of lag
1
lag (v.)
hang (back) or fall (behind) in movement, progress, development, etc.;
Synonyms: dawdle / fall back / fall behind
lag (v.)
lock up or confine, in or as in a jail;
Synonyms: imprison / incarcerate / immure / put behind bars / jail / jug / gaol / put away / remand
lag (v.)
throw or pitch at a mark, as with coins;
lag (v.)
cover with lagging to prevent heat loss;
lag pipes
2
lag (n.)
the act of slowing down or falling behind;
Synonyms: slowdown / retardation
lag (n.)
the time between one event, process, or period and another;
Synonyms: interim / meantime / meanwhile
lag (n.)
one of several thin slats of wood forming the sides of a barrel or bucket;
Synonyms: stave
From wordnet.princeton.edu