Extrapolating past values of a variable to the present is the practice of __________ expectations, which is fairly common among __________ economists.
A) adaptive; New Classical
B) adaptive; Keynesian
C) rational; New Classical
D) rational; Keynesian

Question

Quizplus · Accepted Answer

Adaptive expectations involve adjusting expectations based on past errors and are more commonly associated with Keynesian economics, which emphasizes the role of past experiences in shaping future expectations.

Extrapolating Past Values of a Variable to the Present Is