The expectations-augmented Phillips curve model assumes that people form their expectations about the future rate of inflation based on their recent experience of the actual inflation rate.This way of forming expectation is called ___________ expectations.

Question

Quizplus · Accepted Answer

The term used to describe forming expectations based on recent experience is adaptive expectations. The other options do not accurately describe this type of expectation formation.

The Expectations-Augmented Phillips Curve Model Assumes That People Form Their