In the New Classical Macroeconomic Model Developed by Lucas and Sargent,expansionary

question 56

Multiple Choice

In the new classical macroeconomic model developed by Lucas and Sargent,expansionary macropolicies affect aggregate output

• A)only when the macropolicy change is anticipated.
• B)only when the macropolicy change is unanticipated.
• C)only after a long and variable lag,provided the policy is anticipated.
• D)relatively quickly,provided the policy is anticipated.

---

Definitions:

Multidimensional Space

An abstract mathematical concept, involving more than three dimensions, that can represent complex data structures or physical phenomena.

Mean Squares for Error MSE

A measure used in statistical modeling to quantify the variance of error terms.

Predictor Variables

Variables used in statistical models to predict or estimate the value of an outcome or dependent variable.

Predictor Variable

A variable that is used in statistical models to predict or explain changes in a dependent variable.