Consider the following description of adaptive price expectations:

P^e_t = P^e_t-1+ a(P_t-1 - P^e_t-1), 0

Given that = 0.95, P₀=$120 and P^e₀ =$60, calculate the values of P^e₁,P^e₂, P^e₃ and P^e₄ (assume that the actual price level does not change after period 0 - i.e., that P₄=P₃=P₂=P₁=P₀ ) -calculate the values of and assuming that = 0.95. what significance is the size of for the determination of adaptive expectations? Why would Monetarists be interested in this?