In the rational expectations model, only unexpected or unpredictable changes cause unemployment to deviate from its natural rate.

Name: In the rational expectations model, only unexpected or unpredictable changes cause unemployment to deviate from its natural rate.
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In the rational expectations model, individuals use all available information to form expectations about economic variables, so only unexpected changes can cause deviations from the natural rate of unemployment.

In the Rational Expectations Model, Only Unexpected or Unpredictable Changes