The view that expectations change relatively slowly over time in response to new information is known in economics as
A)rational expectations.
B)irrational expectations.
C)slow-response expectations.
D)adaptive expectations.

Question

Quizplus · Accepted Answer

The view that expectations change relatively slowly over time in response to new information is known as adaptive expectations. This means that individuals adjust their expectations based on past errors in forecasting, but do so gradually rather than immediately.

The View That Expectations Change Relatively Slowly Over Time in Response