Author Question: If expectations are rational, the difference between the actual inflation rate and the forecast for ... (Read 111 times)

waynest · **on:** Jun 30, 2018

If expectations are rational, the difference between the actual inflation rate and the forecast for inflation is:
a. positive when inflation is increasing.
b. negative when inflation is increasing.
c. random.
d. greater, the more accurately people anticipate the effects of government policy.

Question 2

Average growth of per capita GDP of the post-1980 globalizers increased from 1.4 percent per year in the 1960s to _____ percent in the 1990s.
a. 6.4
b. 5.0
c. 3.5
d. 7.8
e. 2.9