One of the Primary Assumptions of the Rational Expectations Model

question 22

Multiple Choice

One of the primary assumptions of the rational expectations model is that

• A) labor and product markets are highly competitive.
• B) people expect others to behave irrationally.
• C) labor markets exhibit short-term stickiness.
• D) prices do not adjust quickly to expansionary policies.

---

Definitions:

Reward Timing

The influence of the timing of rewards on learning and behavior, critical in understanding how conditioned responses are developed and maintained.

Secondary Rewards

Rewards that are learned to be valuable through association with primary rewards or through social conditioning.

Sheffield

A city in South Yorkshire, England, known for its history in steel production and green spaces.

Effective Studying

Strategies or methods that enhance learning efficiency, comprehension, and retention of information.