A hypothesis that assumes that people combine the effects of past policy changes on economic events and their own judgment about future effects of current and future policy changes is known as

Question

Quizplus · Accepted Answer

The description given matches the concept of rational expectations, which assumes that individuals use all available information, including past policy changes and their own judgment, to form expectations about future economic events. The other options, including adaptive expectations, irrelevant expectations, and active expectations, do not fully capture this idea.

A Hypothesis That Assumes That People Combine the Effects of Past