Multiple Choice
Extrapolating past values of a variable to the present is the practice of __________ expectations, which is fairly common among __________ economists.
A) adaptive; New Classical
B) adaptive; Keynesian
C) rational; New Classical
D) rational; Keynesian
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Suppose that for several periods the aggregate
Q19: Suppose that for several periods the aggregate
Q20: Assuming rational expectations and complete wage and
Q21: If inflationary expectations are based on all
Q22: If labor contracts prevent wage flexibility, the
Q24: In a world of rational expectations,<br>A) an
Q25: If an inflation forecast is based on
Q26: Can a Keynesian still believe in an
Q27: A rightward shift of aggregate demand will
Q28: If an inflation forecast is based on