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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

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