Answer all parts (a)-(c) of this question. (a) Explain the main features of the Policy Ineffectiveness Proposition. Us

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Answer all parts (a)-(c) of this question.
(a) Explain the main features of the Policy
Ineffectiveness Proposition. Use a diagram to illustrate your
answer. Why do think the Policy Ineffectiveness Proposition may
fail to hold in reality?
(b) Using diagrams to illustrate your answer explain the
main effects of a negative technological shock in Real Business
Cycle Theory. In your answer make sure to explain the role played
by the intertemporal substitution of labour supply.
(c) Explain the Lucas Critique and its main
implications in terms of conducting economic policies.