Step 7 {Ans: Policy evaluation - process of whether implementation is working}Step 3 {Ans: Policy formulation - creating appropriate courses of action}Step 1 {Ans: Problem recognition - identification of an issue}Step 4 {Ans: Policy adoption - approval of a policy proposal}Step 5 {Ans: Budgeting - allocating resources for implementation}Step 2 {Ans: Agenda setting - process of forming list of issues to address}