Rational Expectations Means That Workers and Firms Form Their Expectations

question 28

Multiple Choice

Rational expectations means that workers and firms form their expectations using:

• A)all the information available to them.
• B)only information from the past.
• C)only information provided to them by the government.
• D)only information gathered from random sources.

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Definitions:

Typicality

The degree to which an object or event is representative of its class, category, or group, affecting how easily and quickly it is recognized and processed.

Id

In psychoanalytic theory, the part of the human psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Motto

A short sentence or phrase chosen as encapsulating the beliefs or ideals guiding an individual, family, or institution.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing how they think, feel, and behave across various situations.