Expectations theories developed by Keynes, Friedman, and Lucas use the same basic concept to describe the formation of expectations.

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Keynes, Friedman, and Lucas developed different theories of expectation formation. Keynes often emphasized more on adaptive expectations, Friedman introduced the concept of natural rate of unemployment and expectations-augmented Phillips Curve, suggesting adaptive expectations, and Lucas introduced rational expectations, which significantly differ in how expectations are formed and adjusted.

Expectations Theories Developed by Keynes, Friedman, and Lucas Use the Same