Implicit in the new Keynesian theory is that individuals form their expectations adaptively.

Name: Implicit in the new Keynesian theory is that individuals form their expectations adaptively.
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Implicit in the new Keynesian theory is that individuals form their expectations rationally, rather than adaptively. Rational expectations imply that individuals form expectations based on all available information and use economic theory to guide their decision-making process.

Implicit in the New Keynesian Theory Is That Individuals Form