Describe the lucas supply function, Microeconomics

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Problem 1:

(a) What are the main assumptions behind the macroeconomic theory of New Classical Economists?

(b) Describe the Lucas Supply function and explain its policy implications?

Problem 2:

(a) Analyse the activist/non activist policy debate.

(b) What is time inconsistency in monetary policy and what are the classical solutions to this problem?


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