The policy irrelevance proposition suggests that the policy effects on the economy primarily occur as a result of

Question

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The policy irrelevance proposition argues that, in the long run, economic outcomes are determined by factors such as technology, preferences, and endowments, rather than by government policies. However, policy mistakes or misjudgment of policies can lead to short-term effects on the economy.

The Policy Irrelevance Proposition Suggests That the Policy Effects on the Economy