Explain how the Friedman-Phelps fooling model predicts that an expansionary monetary policy can lead to increased output

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Explain how the Friedman-Phelps “fooling” model predicts that an expansionary monetary policy can lead to increased output in the short run, while the Lucas model suggests that such a policy would have no effect on real output.

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Question Posted: Dec 09, 2015 03:26 AM

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Explain how the Friedman-Phelps fooling model predicts that an expansionary monetary policy can lead to increased output

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Macroeconomics

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