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Author Question: Any test of the rational expectations hypothesis must show that expectations are formed rationally and (Read 99 times)

dbose

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Question 1

A problem with comparing macroeconomic models is that


◦ people may change how they react when economic policies are changed.
◦ macroeconomic models do not predict the same outcomes from policies.
◦ macroeconomic models cannot be expressed in mathematical terms.
◦ macroeconomic models must meet government standards for uniformity.

Question 2

Any test of the rational expectations hypothesis must show that expectations are formed rationally and


◦ the model being used is the true model.
◦ the velocity of money is constant.
◦ there are no price surprises.
◦ all policy changes are anticipated.


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Marked as best answer by dbose on Apr 19, 2019

polinasid

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dbose

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)


kusterl

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Reply 3 on: Yesterday
Wow, this really help

 

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