Robert Lucas Jr.adapted the fooling model to his own way of thinking by replacing that model's assumption of
A) continuous market-clearing.
B) imperfect information.
C) the natural rate hypothesis.
D) the gradual correction of expectational errors.
Correct Answer:
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Q27: The "real business cycle" (RBC)model adapts the
Q28: The downfall of the fooling model is
Q29: In the fooling model,AD/SAS equilibria to the
Q30: According to the Real Business Cycle model
Q31: In the RBC model,supply shocks
A)are always favorable
Q33: Which of the following best describes the
Q34: In the fooling model,AD/SAS equilibria to the
Q35: Switzerland has experienced the lowest rate of
Q36: In the RBC model,actual real GDP is
A)never
Q37: Which of the following statements best describes
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