Multiple Choice
The Lucas supply function, in combination with the assumption that expectations are rational, implies that
A) anticipated policy changes have a significant effect on real output.
B) unanticipated policy changes have no effect on real output.
C) anticipated policy changes have no effect on real output.
D) the effect that policy changes have on real output is the same, regardless of whether those changes are anticipated or not.
Correct Answer:
Verified
Correct Answer:
Verified
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