What Does It Mean to Say That Workers and Firms

question 101

Essay

What does it mean to say that workers and firms have rational expectations?

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Definitions:

Decoding

Process of phonetic analysis by which a printed word is converted to spoken form before retrieval from long-term memory.

Encoding

Process by which information is prepared for long-term storage and later retrieval.

Print

To produce text or images on paper or other materials using a machine such as a printer, or the text and images produced in this way.

Speech

The verbal means of communicating or expressing thoughts, feelings, or ideas using articulated sounds or words.