What is rational about rational expectations


Problem

1. What is 'rational' about rational expectations?

2. What are 'adaptive expectations? Are they ever rational?

3. Why might the labor market not adjust instantaneously to new information?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: What is rational about rational expectations
Reference No:- TGS02953274

Expected delivery within 24 Hours