A cornerstone of new classical economics is the notion that expectations are rational. What do you think

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A cornerstone of new classical economics is the notion that expectations are “rational.” What do you think will happen to the prices of single-family homes in your community over the next several years? On what do you base your expectations? Is your thinking consistent with the notion of rational expectations? Explain.

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Principles of Macroeconomics

ISBN: 978-0134078809

12th edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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