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:

Self-Handicapping

A strategy where individuals create obstacles and excuses for themselves so that if they do poorly on a task, they can avoid blaming themselves.

Self-Reference Effect

This refers to the tendency for individuals to better remember information that is personally relevant to them, making it more likely to be recalled than non-self-relevant information.

Self-Esteem

An individual's subjective evaluation of their own worth or value.

Life Goals

Long-term aims that guide individuals' actions and decisions, shaping their life paths and personal fulfillment.