Sophia is in Professor Bleistift's office crying. Sophia has missed five classes and Professor Bleistift's syllabus clearly states that any student missing more than three classes will automatically flunk. If Sophia flunks the course, she will not graduate, and she tells the professor that as a result her life will be messed up and his silly attendance statement will be at fault. Therefore he should waive that statement and pass her. To a macroeconomist, the issue here looks a great deal like issues involving:

recognition lag.
life-cycle hypothesis.
rational expectations.
policy rules.

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