Question

Which economic theory assumes individuals will use past values of inflation to predict the possible expected future values of inflation?

Answer 1

The rational expectations theory is a concept and theory used in macroeconomic.

what is rational expectations theory?

• The rational expectations theory could be a concept and modeling method that's utilized broadly in macroeconomics.
• The hypothesis sets that people base their choices on three essential variables: their human judiciousness, the data accessible to them, and their past experiences.
• The theory proposes that people’s current expectations of the economy are, themselves, able to impact what long-term state of the economy will gotten to be.
• This statute contrasts with the thought that government arrangement impacts monetary and financial decisions.

To know more about visit:

brainly.com/question/28197685?

#SPJ4