According to new classical economists,policies should be introduced suddenly to surprise the economy in order to
A)Prevent political lobbying that results in goal conflicts.
B)Minimize design problems that impede the implementation of policy.
C)Prevent anticipatory behavior that defeats the purpose of the policy.
D)Avoid the lags associated with policy announcements.

Question

Quizplus · Accepted Answer

New classical economists believe that if policies are introduced gradually, individuals and firms will anticipate and adjust their behavior accordingly, ultimately defeating the purpose of the policy. By introducing policies suddenly and unexpectedly, individuals and firms do not have the opportunity to adjust their behavior, allowing the policy to have a greater impact on the economy.

According to New Classical Economists,policies Should Be Introduced Suddenly to Surprise