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The Lucas's critique says that: Question 5 options: estimated models based on a previous policy regime cannot be used to examine the implications of a
The Lucas's critique says that: Question 5 options: estimated models based on a previous policy regime cannot be used to examine the implications of a new policy regime expectations are a weighted average of past inflation and the central bank's target for inflation we should always define inflation and output expectations as equal to that in the previous period all economic agents are rational
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