Describe Three Arguments of Why Some Economists Object to the Predictions

question 46

Essay

Describe three arguments of why some economists object to the predictions of the rational expectations theory and do not subscribe to the conclusions of this approach.

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Definitions:

Biological Maturation

The process by which living organisms grow and develop physically according to their genetic timetable.

Conservation

The protection, preservation, management, or restoration of natural environments, ecosystems, vegetation, and wildlife.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs and desires different from one's own.

Centration

A term from cognitive development theory describing a focus on one aspect of a situation while ignoring others, common in early childhood.