Price expectations are a function of which of the following?
A)current and past prices, expected changes in aggregate demand, and expected changes in production costs
B)current prices only
C)current and past prices only
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Price expectations are influenced by current and past prices, expected changes in aggregate demand, and expected changes in production costs. Simply relying on current prices would not provide a complete picture of future price expectations. Similarly, past prices alone cannot accurately predict future prices without considering other factors, such as changes in demand and production costs.

Price Expectations Are a Function of Which of the Following