According to the ________ hypothesis, unemployment may occur, and if it does, it will be temporary.
A) Keynesian labor
B) Socialist workers'
C) rational expectations
D) equilibrium employment

Question

Quizplus · Accepted Answer

The rational expectations hypothesis suggests that individuals use all available information to make forecasts about the future, including the state of unemployment. According to this hypothesis, any unemployment that occurs would be due to temporary adjustments, as people's expectations adjust to new information.

According to the ________ Hypothesis, Unemployment May Occur, and If