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    Macroeconomics for Today
  4. Exam
    Exam 17: The Phillips Curve and Expectations Theory
  5. Question
    In the Rational Expectations Model, Only Unexpected or Unpredictable Changes
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In the Rational Expectations Model, Only Unexpected or Unpredictable Changes

Question 1

Question 1

True/False

In the rational expectations model, only unexpected or unpredictable changes cause unemployment to deviate from its natural rate.

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