The Lucas Critique Is an Attack on the Usefulness of

question 5

Multiple Choice

The Lucas critique is an attack on the usefulness of

• A)conventional econometric models as forecasting tools.
• B)conventional econometric models as indicators of the potential impacts on the economy of particular policies.
• C)rational expectations models of macroeconomic activity.
• D)the relationship between the quantity theory of money and aggregate demand.

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Definitions:

Companionate Love

A deep, affectionate attachment characterized by mutual respect, affection, and commitment, rather than by passion.

Self-Disclosure

The act of revealing personal, private information about oneself to others, which plays an integral role in forming close relationships.

Positive Support

Encouragement and assistance provided by others that enhances well-being and facilitates achievement of goals.

Inequitable

Unfair, unjust, or not equal in a way that disadvantages someone.