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The Lucas Critique suggests that business cycles, periods of growth too rapid to sustain followed by periods of contraction of the economy, occurs because Group
The Lucas Critique suggests that business cycles, periods of growth too rapid to sustain followed by periods of contraction of the economy, occurs because
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a) Lags in fiscal and monetary policy cause the policy to be the wrong one by the time it takes affect.
b) government has no ability to judge the health of the economy.
c) businesses continually overinvest.
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