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.

Question

Quizplus · Accepted Answer

New classical economists believe that individuals have rational expectations and will anticipate government policies. If policies are introduced gradually, people will adjust their behavior in anticipation, leading to the policy being ineffective. Therefore, policies should be introduced suddenly to prevent anticipatory behavior that defeats the purpose of the policy.

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