Adaptive Expectations Assume That Individuals

question 4

Multiple Choice

Adaptive expectations assume that individuals:

• A) base predictions on random events (i.e., animal spirits).
• B) make predictions based on the past behaviour of the economy.
• C) form their predictions of macroeconomic variables randomly.
• D) can accurately predict the future.
• E) use all available information in predicting the future.

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Definitions:

Armed Drones

Unmanned aerial vehicles equipped with weapons used for combat and surveillance missions.

Ethical Problems

Dilemmas faced when deciding the morally right course of action among several options.

Human Rights

The basic rights and freedoms that belong to every person in the world, from birth until death, regardless of any factor.

Public Policy

A system of laws, regulatory measures, courses of action, and funding priorities concerning societal issues, established by governmental entities.