The rational expectations hypothesis means that
A) economic agents can predict the future.
B) economic agents do not make systematic errors.
C) everyone expects everyone else to act rationally.
D) economic agents reason with expectations.
B
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Which of the following is not a reason why government programs might fail to achieve their goals?
a. Insufficient information to correctly achieve the goal. b. One policy goal is in direct conflict with another policy goal. c. Politicians respond to political incentives to deviate from the goal. d. Inability to use coercion to achieve the goal.
In 2012, what percentage of total income in the U.S. was earned by the poorest fifth of all U.S. households?
a. 1.5% b. 1.8% c. 2.0% d. 3.2%
Households sell their inputs to firms in ______ markets.
a. closed b. stock c. product d. factor
In order to measure what a country produces, we:
A.) Summarize total output in physical terms. B.) Count units of output. C.) Count the weight of different products. D.) Summarize the monetary value of output.