In the Lucas Model with random monetary policy we have a Signal Extraction Problem. This means that... Question 11 options: Prices do not always reveal the true state of the world and agents are not always able to infer the number of young people on their island. Prices do not always reveal the true state of the world, but agents are always able to infer the number of young people on their island. Prices do not always reveal the true state of the world and cannot be observed. Prices always reveal the true state of the world but cannot be observed