On what aspect of policymaking, according to Robert Lucas, have policymakers been shortsighted in the past?
What will be an ideal response?
The Lucas critique focuses on the fact that people will anticipate policy as they make their decisions so policymakers need to consider the impact on peoples' economic decisions of the policy they will propose. People will not continue to make the same decisions once policies are changed and to think otherwise will likely result in outcomes far from what policymakers expected.
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If product Y is an inferior good, a decrease in consumer incomes will
A. shift the demand curve for product Y to the left. B. make buyers want to buy less of product Y. C. shift the demand curve for product Y to the right. D. not affect the sales of product Y.
Litigation costs include all of the following expect which one?
A) bad publicity B) filing fees C) marketing fees D) legal fees
Which of the following statements is TRUE about the market and individual firm's supply curve for labor?
A) The market supply curve is perfectly elastic and the individual firm's supply curve is perfectly inelastic. B) The market supply curve is perfectly inelastic and the individual firm's supply curve is perfectly elastic. C) The market supply curve is more elastic than the firm's supply curve. D) The market supply curve is more inelastic than the firm's supply curve.
In perfectly competitive markets, products are ______ and sellers are ______.
a. homogeneous; price takers b. homogeneous; price searchers c. substantially different; price takers d. substantially different; price searchers