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Rational expectation theory holds that people form the most accurate possible expectations about the future they can, using all the information available to them at

Rational expectation theory holds that people form the most accurate possible expectations about the future they can, using all the information available to them at the time. That being said, in an economy where most people have rational expectations, it would be safe to say this supports that economic adjustments will happen quickly and thus support neoclassical theory. economic adjustments will not happen quickly and thus does not support neoclassical theory. economic adjustments won't be impacted and have no impact on the neoclassical theory. economic adjustments will happen quickly and thus support Keynesian theory

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