According to Rational Expectations Theory, What Information Do Businesses and Workers

question 26

Multiple Choice

According to rational expectations theory, what information do businesses and workers use when they form their expectations regarding inflation?

• A) recent events and data
• B) Keynesian and monetarist models
• C) forecasts by public-and private-sector economists
• D) all the relevant information that is available

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Definitions:

Inaugural Address

A speech given during the inauguration ceremony of a newly elected or re-elected official, outlining their intentions, policies, and goals for their term in office.

George W. Bush

The 43rd President of the United States, serving from 2001 to 2009, known for leading the country through the September 11 attacks and initiating the Iraq War.

African-Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.

Twentieth Century

The century that spanned from January 1, 1901, to December 31, 2000, noted for rapid advancements in technology, significant geopolitical changes, and major global conflicts.