What does the rational expectations school advocate?

Question

Quizplus · Accepted Answer

The rational expectations school advocates for a passive approach to policy, meaning that the market should be allowed to function on its own without interference from government intervention. This is in contrast to an activist approach to policy, which would involve government intervention to stabilize the economy. Rational expectations also tends to favor monetarism over Keynesianism, emphasizing the importance of controlling the money supply rather than using fiscal policy to stimulate demand.

What Does the Rational Expectations School Advocate