Traditional Macroeconomic Models Assume That People's Expectations of Inflation

question 164

Multiple Choice

Traditional macroeconomic models assume that people's expectations of inflation

• A) are determined by looking at all the relevant information and forecasting the future inflation rate.
• B) will be zero in the future.
• C) are set by assuming a continuation of present inflation.
• D) are set by merely guessing what the future inflation rate will be.

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