Multiple Choice
How does the Lucas critique relate to analysis using the simple Phillips curve? The Lucas critique:
A) supports analysis using the simple Phillips curve.
B) explains why the relationship depicted in the simple Phillips curve may not hold.
C) supports movement along a simple Phillips curve but only when policy changes cause the movement.
D) indicates that there are no conditions when the simple Phillips curve is accurate.
Correct Answer:
Verified
Correct Answer:
Verified
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