The Lucas supply function, real business cycle theory, and the new Keynesian model all assume rational expectations.
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Q275: The Lucas supply function implies that only
Q276: The real business cycle theory places little
Q277: The rational expectations hypothesis assumes that people
Q278: The Lucas supply function incorporates the idea
Q279: If all firms behave in a way
Q281: Expectations are hard to test even though
Q282: Any test of the rational expectations hypothesis
Q283: Macroeconomic models differ in ways that are
Q284: Competing macroeconomic models may be hard to
Q285: Most empirical testing in macroeconomics uses data
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