From the perspective of a policy maker, which of the following combinations would make an outside disturbance to an economy most troublesome?
A) A disturbance that is unanticipated and permanent
B) A disturbance that is unanticipated and temporary
C) A disturbance that is anticipated and permanent
D) A disturbance that is anticipated and temporary
E) All of the above equally

Question

Quizplus · Accepted Answer

A disturbance that is unanticipated and permanent is most troublesome because policymakers have no time to prepare or adjust policies in advance, and its permanent nature means its effects are lasting, requiring potentially significant and long-term policy adjustments.

From the Perspective of a Policy Maker, Which of the Following