A rational expectation of the inflation rate is
A) an expected inflation rate between 1 per cent and 5 per cent.
B) always correct.
C) a forecast based on the forecasted actions of the Reserve Bank and other relevant determinant factors.
D) an expected inflation rate between 5 per cent and 10 per cent.
E) a forecast based only on the historical evolution of inflation over the last 100 years.
Correct Answer:
Verified
Q59: When the natural unemployment rate increases,
A) there
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