The View That Expectations Change Relatively Slowly Over Time in Response

question 82

Multiple Choice

The view that expectations change relatively slowly over time in response to new information is known in economics as

• A)rational expectations.
• B)irrational expectations.
• C)slow-response expectations.
• D)adaptive expectations.

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Definitions:

Equation

A statement that asserts the equality of two expressions, typically including one or more variables.

Graphing Calculator

A handheld calculator that is capable of plotting graphs, solving simultaneous equations, and performing other tasks with variables.

Standard Viewing Window

The default range of values on the x-axis and y-axis that are displayed on a graphing calculator's screen or graphing software.

Absolute Value

The distance of a number from zero on the real number line, without regard to direction; represented as \(|x|\).