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    Macroeconomics Study Set 12
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    Exam 17: New Classical Macro and New Keynesian Macro
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    If Forecasting Errors Are Rational,then
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If Forecasting Errors Are Rational,then

Question 19

Question 19

Multiple Choice

If forecasting errors are rational,then


A) people will always be error-prone.
B) they will be random,and thus independent of previous errors.
C) they will be independent of business firm production and price forecasts.
D) A and C are both correct.

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