The Concept of Rational Expectations First Appeared on the Economic

question 109

Multiple Choice

The concept of rational expectations first appeared on the economic scene in _______,but it wasn't until the _____________ that it received more significant notice in the economics profession.

• A) 1931; early 1970s
• B) 1961; early 1970s
• C) 1981; early 1990s
• D) 1991; early 2000s
• E) 1921; early 1980s

---

Definitions:

Changes

Alterations or modifications in conditions, situations, or in the state of affairs.

Prices

The amount of money required to purchase a good or service, reflecting its value in a monetary term.

Inflation Rate

The rate at which the overall cost of goods and services rises over a given time frame.

Base Year

A reference year against which economic growth, inflation, or other economic indicators are measured.