Macroeconomics
Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 16.3, Problem 2ST
To determine

The difference between rational and adaptive expectation in the natural rate theory when the policy is unanticipated.

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Students have asked these similar questions
Rational vs Adaptive Expectations. How are they both different from the assumption we have used up to this point?  What are the policy implications of one versus the other?
define adaptive expectations what is its main implication
Explain the main criticisms against the Rational Expectations Hypothesis as used in economics.
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