"The Lucas critique by itself casts doubt on the ability of discretionary stabilization policy to be beneficial." Is this stat

Question

FromTheMoon [43]

2 years ago

10

"The Lucas critique by itself casts doubt on the ability of discretionary stabilization policy to be beneficial." Is this stat

ement true, false, or uncertain? Explain your answer.

Business

1 answer:

Helen [10] · Answer 1 · 2022-09-23T18:10:42+03:00

Helen [10]2 years ago

6 0

Answer: True

Explanation:

The Lucas critique points out that expectation has effects on how policy affects inflation and output which makes creating beneficial policy difficult.

​"The Lucas critique by itself casts doubt on the ability of discretionary stabilization policy to be​ beneficial." Is this stat

"The Lucas critique by itself casts doubt on the ability of discretionary stabilization policy to be beneficial." Is this stat