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Business, 28.12.2019 01:31 heyboi2516

According to lucas and sargent, workers and firms have rational expectations, and therefore if the fed pursues an expansionary monetary

a. agents will cause an decrease in the natural rate of unemployment.
b. agents will cause an increase in the natural rate of unemployment.
c. agents will not change their expectations.
d. agents will immediately adjust their expectations of inflation up.

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