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What Do Economists Mean When They Say That Rational Expectations

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What do economists mean when they say that rational expectations are correct on average, even though their predictions are not exactly right all the time?


Definitions:

Projected Percentage

An estimation or forecast of a percentage value in the future based on current trends or data analysis.

Cognition-Related Capacities

The abilities related to the processing of information, reasoning, memory, and problem-solving.

Long-Term Memory

The aspect of memory involved in the storage and retrieval of information over long periods, anything from hours to a lifetime.

Presbycusis

A gradual loss of hearing that occurs as people age.

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