Which principle of rational expectations theory is used to prove the proposition that stabilization policy can have

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Which principle of rational expectations theory is used to prove the proposition that stabilization policy can have no predictable effect on aggregate output in the new classical model?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:35 AM

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Which principle of rational expectations theory is used to prove the proposition that stabilization policy can have

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The principle that the forecast errors of expectation cann...View the full answer

Economics of Money, Banking and Financial Markets

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