QUESTION 26 \"Rational expectation\" means that people e know what their wages a

Question

QUESTION 26 "Rational expectation" means that people e know what their wages are, but do not keep good track of prices O look at a weighted average of all past inflation rates to forecast the future take into account all available information to forecast the future o are not able to form accurate expectations unless they pass the economisets/rabonality t tests QUESTION 27 When government officials do not take into account how peopie's expectations change when polity changes,this is cealed O the Lucas Critique O the Theory of Rational Expectations the Theory of Adaptive Expectations the ignorant Consumer Hypothesis QUESTION 28 If the money demand function is (M/P)d - 600-100r the money supply is 1600 and Pa4, then the equibrum interest rate (Note this math question is worth 5 points) 8% QUESTION 29

Explanation / Answer

27) Ans is C

Theory of Adaptive expectations doesnot entertain the people expectation into theory and does assume on the basis of past experience.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.