If a forecast is made using all available information,then economists say that the expectation formation is
A)rational.
B)irrational.
C)adaptive.
D)reasonable.

Question

Quizplus · Accepted Answer

Rational expectation formation is the process of forming expectations based on all available information, including economic models and data. This is considered the most accurate method of forecasting because it takes into account all relevant information, rather than relying on past patterns or simple guesses.

If a Forecast Is Made Using All Available Information,then Economists