the rational expectations theory assumes that market participants formulate their expectations solely on the basis of past informati market participants formulate their expectations on the basis of past, present, and projected future information. market participants lack rational economic behavior. market participants have perfect foresight. market participants are slow to learn of new policies.

the rational expectations theory assumes that market participants formulate their expectations solely on the basis of past informati market participants formulate their expectations on the basis of past, present, and projected future information. market participants lack rational economic behavior. market participants have perfect foresight. market participants are slow to learn of new policies.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter26: The Neoclassical Perspective

Section: Chapter Questions

Problem 4SCQ: Summarize the Keynesian and Neoclassical models.

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