Both adaptive expectations and rational expectations are prone to error (a discrepancy between the expectation and the actual experience).In each case,how does error affect the formation of new expectations?
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Q5: Rational expectations theory suggests that _.
A)policy announcements
Q6: Rational expectations theory suggests that _.
A)consumers base
Q7: Forecasts based on the extrapolation of observed
Q8: Economists use _ to forecast economic activity
Q9: The notion that expectations will be identical
Q11: Adaptive expectations are formed _.
A)from experience
B)from best
Q12: Assume that prices have risen in a
Q13: An economic policy has a decent chance
Q14: Suppose you need an estimate of future
Q15: Robert Lucas spurred the rational expectations revolution
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