If Workers and Firms Have Rational Expectations,they Form Their Expectations

question 94

Multiple Choice

If workers and firms have rational expectations,they 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:

Net Income

The amount of profit a company has left after all expenses, taxes, and costs have been subtracted from total revenue.

Net Working Capital

The difference in a company’s readily available assets versus its current financial obligations, marking its short-term economic status.

Statement of Financial Positions

A financial report that presents a company's assets, liabilities, and equity at a specific point in time, giving insight into its financial health.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.