Jonah earned a C in ECON 101, and so he expects to earn a C in ECON 102. Jonah's prediction is consistent with _____ expectations.
A) neutral
B) adaptive
C) consistency
D) rational

Question

Quizplus · Accepted Answer

Adaptive expectations theory suggests that people predict future values of variables such as inflation or grades based on past experiences. Jonah's expectation of earning a C in ECON 102 based on his grade in ECON 101 aligns with this theory, as he is adapting his expectations based on his previous outcome.

Jonah Earned a C in ECON 101, and So He