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A standard argument is that policy ineffectiveness requires both rational expectations and perfect market clearing. Explain what is meant by perfect market clearing, and give

A standard argument is that policy ineffectiveness requires both rational expectations and perfect market clearing. Explain what is meant by perfect market clearing, and give two examples of an economic feature whose presence in an AD/AS/RE model means that perfect market clearing does not hold. What, if any, markets do you think are more likely to exhibit perfect market clearing than other markets?

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