One major conclusion of the rational expectations theory is that

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According to the rational expectations theory, people form expectations about future economic outcomes based on all available information, including past events and government policies. Therefore, if the government implements a macroeconomic policy, individuals will adjust their expectations and behavior accordingly, making it unlikely that the policy will have a significant impact on GDP in the short run. As a result, the theory suggests that the effectiveness of macroeconomic policy is limited and that policymakers should focus on creating a stable economic environment in the long run.

One Major Conclusion of the Rational Expectations Theory Is That