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According to the Lucas Critique, When Economists Evaluate Alternative Policies

Question 4

Multiple Choice

According to the Lucas critique, when economists evaluate alternative policies they must take into consideration:


A) how the policies will affect expectations and behavior.
B) whether the policy will offset the impact of automatic stabilizers.
C) the stage of the political business cycle in which the policy is to be implemented.
D) the length of the inside lags associated with the policies.

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