According to the Lucas critique, when economists evaluate alternative policies they must take into consideration:
A) how the policies will affect expectations and behavior.
B) whether the policy will offset the impact of automatic stabilizers.
C) the stage of the political business cycle in which the policy is to be implemented.
D) the length of the inside lags associated with the policies.
Correct Answer:
Verified
Q34: Policy is conducted by rule if policymakers:
A)
Q35: What are two types of tools that
Q36: If past policies kept the economy insulated
Q37: Automatic stabilizers:
A) require congressional action before each
Q38: According to advocates of rational expectations, traditional
Q40: Because monetary and fiscal lags are long
Q41: The political business cycle refers to the:
A)
Q42: If citizens vote on the basis of
Q43: An argument in favor of allowing discretionary
Q44: If policymakers are free to analyze events
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