When individuals use all available information about an economic variable to make a decision, expectations are

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When individuals use all available information about an economic variable to make a decision, their expectations are considered rational because they are based on the best available information at the time. It does not necessarily mean that their expectations are always 100% accurate or that they cannot change in the future as new information becomes available. It simply means that the expectations are based on a thoughtful and informed analysis of the available information.

When Individuals Use All Available Information About an Economic Variable