The Rational Expectations Theory Claims That Workers and Firms Will

question 173

True/False

The rational expectations theory claims that workers and firms will not make systematic errors when they forecast inflation.

---

Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test that determines whether to reject the null hypothesis.

Approximately Normal

Describes data that roughly follows a normal distribution, though it may not perfectly fit the normal curve.

Z Test Statistic

A type of statistical test where the test statistic follows a normal distribution under the null hypothesis.

Population Proportion

The fraction or percentage of a population that possesses a particular attribute or characteristic.