Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Select the correct words to complete this text: There are two neoclassical theories about expectations: rational expectations and adaptive expectations. The theory of rational expectations
Select the correct words to complete this text: There are two neoclassical theories about expectations: "rational expectations" and "adaptive expectations". The theory of rational expectations says that people's expectations about the future are and therefore the economy will reach the long run equilibrium after something changes. The theory of adaptive expectations says that people form their expectations about the future based on . If this is the case, the economy will reach the long run equilibrium after something changes
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started