Which two famous economists hypothesized that people would adapt their expectations about inflation to something consistent with their prior experiences?
A) Ben Bernanke and Alan Greenspan
B) Milton Friedman and Edmund Phelps
C) Adam Smith and David Ricardo
D) John Maynard Keynes and F.A.Hayek
E) Irving Fisher and Adam Smith

Question

Quizplus · Accepted Answer

Milton Friedman and Edmund Phelps developed the theory of adaptive expectations, which suggests that people will adjust their expectations about inflation based on their past experiences with inflation.

Which Two Famous Economists Hypothesized That People Would Adapt Their