Question
In a few short sentences, discuss the differences between the time path of inflation and output under adaptive and rational expectations, respectively. In particular, why
In a few short sentences, discuss the differences between the time path of inflation and output under adaptive and rational expectations, respectively. In particular, why does the rational expectations economy have less inertia with respect to inflation and output?
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
