A problem with comparing macroeconomic models is that
A) people may change how they react when economic policies are changed.
B) macroeconomic models do not predict the same outcomes from policies.
C) macroeconomic models cannot be expressed in mathematical terms.
D) macroeconomic models must meet government standards for uniformity.

Question

Quizplus · Accepted Answer

People may change their behavior in response to changes in economic policies, a phenomenon known as the Lucas critique, which complicates the comparison of macroeconomic models.

A Problem with Comparing Macroeconomic Models Is That