This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The rational-expectations hypothesis suggests that the forecasts that people make concerning future ... (Read 66 times)

Mimi

  • Hero Member
  • *****
  • Posts: 542
on: Apr 19, 2019

Question 1

The problem with the traditional macroeconomic treatment of expectations of inflation is that


◦ the model is not consistent with the microeconomic assumption that individuals are rational, forward-looking people.
◦ the model assumes that individuals will merely guess at what the inflation rate will be.
◦ in the model people always assume that inflation will be zero.
◦ the way people formulate expectations in that model assumes that individuals are highly sophisticated in their economic thinking.

Question 2

The rational-expectations hypothesis suggests that the forecasts that people make concerning future inflation rates


◦ are always correct.
◦ consistently overestimate the actual rate of inflation in the future.
◦ are correct on average, but are subject to errors that are distributed randomly.
◦ consistently underestimate the actual rate of inflation in the future.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Mimi on Apr 19, 2019

izzat

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


Mimi

  • Member
  • Posts: 542
Reply 2 on: Apr 19, 2019
Excellent

meow1234

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

projections of future oil production projections of future oil production
A farmer with a pitchfork, wearing a hat identifying him as a Granger, warns of an oncoming “Consoli A farmer with a pitchfork, wearing a hat identifying him as a Granger, warns of an oncoming “Consoli
April Greiman, Does It Make Sense? April Greiman, Does It Make Sense?
Vocational interests seem to be established well before adulthood, and young people of all ages ... Vocational interests seem to be established well before adulthood, and young people of all ages ...
Long-range forecasts Long-range forecasts
Sensory Crossover Device for Visually Impaired People Sensory Crossover Device for Visually Impaired People
Video: How eudicots (true dicots) differ from monocots Animation

For a complete list of videos, visit our video library