The Lucas critique focuses specifically on:
A. the role that economic policymaking has on people's economic behavior.
B. the relationship between Fed policy and the money supply.
C. the inability to measure economic performance accurately.
D. the moving away from fixed exchange rates to flexible exchange rates.
Answer: A
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According to the theory of money, what is the most compelling evidence to use against those researchers or historians who believe that England was responsible for creating a shortage of money in colonial America?
(a) Colonial growth in commerce and trade proceeded. (b) The colonists paid moderate rates of interest. (c) Investment in colonial America occurred. (d) Prices increased, rather than decreasing.
Which of the following is a problem associated with judging competitiveness by structure?
A. It is difficult to determine the relevant market and the relevant industry necessary to identify the structural competitiveness of any industry. B. It requires that each action of a firm be analyzed on a case-by-case basis, which is very time- consuming and expensive. C. Structure can be a predictor of future performance. D. Whether the actions of a firm can be considered appropriate competitive behavior depends on the circumstances.