If people made an assumption that future rates of inflation will follow the pattern of inflation rates in the past, they are said to have an adaptive expectation.
`Adaptive expectation is an economic theory that emphasizes the role of previous occurrences in forecasting future results. Predicting inflation is a common example. According to adaptive expectations, if inflation increases in the previous year, consumers will anticipate more inflation in the next year.
Pe = Pt -1 is a simple formula for adaptive expectations. This indicates that respondents anticipate inflation to be similar to last year.
The model makes the simple assumption that individuals base their estimates of the future on what has already occurred. In the actual world, previous behavior is just one of many variables that affect present and future actions. Particularly whether inflation is trending higher or lower, adaptive expectations are limited. Due to these restrictions, rational expectations were formed, which took a variety of elements into account while making decisions.
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The type of account that typically has very high liquidity, low or no interest, and low minimum balance is :
Checking account
Commonly, company using checking account for a specific purpose, i.e : checking account for travel, checking account for supplies, etc
Answer:
Gap between the supply curve and the market price.
Explanation:
Producers surplus refers to the surplus that a producer of a commodity can obtain. The producers surplus is the difference between the producer's willingness to accept the price and the actual price they have received.
Producers surplus = Actual market price - Willingness to accept the price
Graphically, it is the area between the upper portion of supply curve and the market price.
Answer:
Principle of National Treatment
Explanation:
The World Trade Organization (WTO) established the principle of national treatment in order for the member states to treat foreign products equally to domestic products. This means that any legally imported good should receive the same legal treatment as domestically produced goods, e.g. they have to be taxed the same way.
Answer: The correct answer is "C) giving up rather than standing up to the boss as required by law.".
Explanation: This is a situation of: <u>giving up rather than standing up to the boss as required by law.</u>
Michael should have sued his boss before the law so that he could instead be compensated for the bad treatment and discrimination and also collect unemployment compensation in the event that the employment relationship is terminated.