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(d) (12 points) Suppose that the public have adaptive expectations, and that 1 = 3, a = 1.5, yn = 2.5, and et = 0.

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(d) (12 points) Suppose that the public have adaptive expectations, and that 1 = 3, a = 1.5, yn = 2.5, and et = 0. What is the equilibrium rate of output under an adaptive expectations equilibrium in period t? (e) (12 points) What is the equilibrium in period t if the public have rational expec- tations

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