Adaptive Expectations Is a _____-Looking Model, and Rational Expectations Is

question 124

Multiple Choice

Adaptive expectations is a _____-looking model, and rational expectations is a _____-looking model.

• A) forward; forward
• B) forward; backward
• C) backward; forward
• D) backward; backward

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Definitions:

Growth

A process whereby an economy's capacity to produce goods and services increases over time.

Population Growth

The increase in the number of individuals in a population, often measured as the change in the total number of residents over a specific time period.

Incentives

Factors, monetary or non-monetary, that motivate individuals or entities to perform certain actions or behave in a desired way.

Coercion

The practice of forcing another party to act in an involuntary manner by use of threats, intimidation, or some other form of pressure or force.