Multiple Choice
In the new classical macroeconomic model developed by Lucas and Sargent,expansionary macropolicies affect aggregate output
A) only when the macropolicy change is anticipated.
B) only when the macropolicy change is unanticipated.
C) only after a long and variable lag,provided the policy is anticipated.
D) relatively quickly,provided the policy is anticipated.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: According to the Lucas critique,if past increases
Q47: Today,most economists<br>A)accept that expectations formation will change
Q48: Steve the economist tells his students that
Q49: In a new classical view of the
Q50: In the new classical model,an unanticipated increase
Q51: Rational expectations theory suggests that the success
Q52: The similarity between advocates of nondiscretionary policies
Q53: Mariann the economist argues that expectations are
Q54: In the new classical model,an expansionary monetary
Q55: Explain why anticipated policy has different short-run