According to Adaptive Expectations Theory,when Inflation Accelerates

question 155

Multiple Choice

According to adaptive expectations theory,when inflation accelerates,

• A) people underestimate inflation.
• B) people overestimate inflation.
• C) people correctly estimate inflation.
• D) people change to rational expectations.
• E) unemployment must increase.

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Definitions:

Affiliation Needs

Occur in people who want to be accepted and liked by others.

Ambition

A strong desire to achieve success, power, or fame, often driving individuals to pursue goals with determination.

Values Conflict

A situation where individual beliefs or ethical standards clash with those of others or with institutional norms, leading to dilemmas or disputes.

Theory X Assumptions

A management perspective that assumes employees are inherently lazy, need constant supervision, and must be enticed with rewards or threatened with punishment to perform.