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What does the Lucas Critique point out? Question 12 options: Reduced-form correlations are enough to perform econometric policy evaluation; a theory is unnecessary. Reduced-form correlations
What does the Lucas Critique point out? Question 12 options: Reduced-form correlations are enough to perform econometric policy evaluation; a theory is unnecessary. Reduced-form correlations cannot change but should not be used to inform government policies. Reduced-form correlations are subject to change when government policies change. Reduced-form correlations are stable even when government policies change
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