According to rational expectations theory, what information do businesses and workers use when they form their expectations regarding inflation?
A)Recent events and data.
B)Keynesian and monetarist models.
C)Forecasts by public-and private-sector economists.
D)All the relevant information that is available.

Question

Quizplus · Accepted Answer

Rational expectations theory posits that businesses and workers use all available relevant information to form their expectations about future economic variables, including inflation.

According to Rational Expectations Theory, What Information Do Businesses and Workers