The adaptive expectations hypothesis implies that people:
a. adjust their expectations quickly to policy changes.
b. expect the next period to be pretty much like the recent past.
c. will always be correct in their forecast for the next period.
d. change their expectations about the future if policy changes.
b
Economics
You might also like to view...
If a country has an expenditure multiplier of 10, the slope of its aggregate planned expenditure (AE) curve is
A) .90. B) 10.00. C) .50. D) .10. E) .80.
Economics
Based on the answer above, the price for iPads _____________ and the quantity demanded for iPads ____________
a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease, decrease
Economics