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Home Q & A Board Other Fields Homework Help Business Economics
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bedau bedau
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6 years ago
The "information barrier" that is the root cause of business cycles in the Lucas model is that
A) workers observe the prices of what they personally buy, but cannot observe the general price level.
B) workers do not know when changes in the price level mean changes in the prices of the goods they buy.
C) firms do not know when changes in the price of the good they sell matches changes in the price level and thus their marginal cost.
D) firms do not know if a change in the price level will have any effect on their marginal cost and thus their willingness to supply.
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
Author:
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supersuinegsupersuineg
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6 years ago
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bedau Author
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6 years ago
Thanks for your help!!
kobbhy
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Yesterday
this is exactly what I needed
annakc
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2 hours ago
You make an excellent tutor!
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