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kozerog [31]
1 year ago
10

which view of the macroeconomy suggests that the speed of adjustment Purcell correction would be very quick

Physics
1 answer:
horsena [70]1 year ago
7 0

Rational expectations theory suggests that the speed of adjustment Purcell correction would be very quick.

<h3>What Is Rational Expectations Theory?</h3>

The rational expectations theory is a widely used concept and modeling technique in macroeconomics. Individuals make decisions based on three primary factors, according to the theory: their human rationality, the information available to them, and their past experiences.

The rational expectations hypothesis was originally suggested by John (Jack) Muth 1 (1961) to explain how the outcome of a given economic phenomena depends to a certain degree on what agents expect to happen.

  • People who have rational expectations always learn from their mistakes.
  • Forecasts are unbiased, and people make decisions based on all available information and economic theories.
  • People understand how the economy works and how government policies affect macroeconomic variables like the price level, unemployment rate, and aggregate output.

To learn more about Rational expectations theory from the given link

brainly.com/question/16479910

#SPJ4

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