Show that they behave as they would in a perfect-foresight, Econometrics

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Show that they behave as they would in a perfect-foresight

Use equations (11) and (12) to check the effects of anticipated and unanticipated supply shocks on the level of output. Show that they behave as they would in a perfect-foresight model when anticipated and as they would in the standard AS-AD model when unanticipated.

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Econometrics: Show that they behave as they would in a perfect-foresight

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