The Lucas supply function states that real output can change from its fixed level

A. only if there is a positive price surprise.
B. only if there is a negative price surprise.
C. only if there is no price surprise.
D. Both A and B are possible.


Answer: D

Economics

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In the short-run macro model, which of the following increases when government spending increases?

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a. True b. False Indicate whether the statement is true or false

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What will be an ideal response?

Economics