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Policymakers May Be Uncertain About the Structure of the Economy

Question 62

Multiple Choice

Policymakers may be uncertain about the structure of the economy because


A) initial releases of data may be less accurate than later data releases.
B) they don't know the predominant source of shocks to the economy.
C) they don't know how shocks affect people's expectations.
D) they are not aware of modern macroeconomic modeling techniques.

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