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Research on the imaginary audience suggests that
Rational Expectations
The economic theory that assumes individuals make predictions about the future based on all available information and in a way that is systematically correct.
Policy Makers
Individuals or groups responsible for making decisions and establishing regulations that guide the operation of governments and organizations.
Inflationary Expectations
The beliefs that consumers, businesses, and investors have about future inflation rates, which can influence economic behavior and policy decisions.
Discretionary Policy
Involves government policies that are implemented through ad-hoc decisions by policymakers, rather than set by predetermined rules.
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