Related to the Economics in Practice on p. 346 [658]: What was the conclusion of the study concerning how people form their expectations?
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Q53: What criterion should be used for deciding
Q54: Traditional economic models assume that people form
Q55: Q56: What is the problem with the traditional Q57: Define the rational-expectations hypothesis. Explain the following Q59: What does the rational-expectations hypothesis suggest about Q60: If firms have rational expectations and if Q61: Assume that the rational-expectations theory is a Q62: What did early real business cycle theorists Q63: Assume that the economy is represented by![]()
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