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Business, 13.12.2019 05:31 tonydeanfbg4798

Adaptive expectations theory
a) explains the relationship between the unemployment rate and inflation.
b) holds that people form expectations perfectly.
c) holds that people’s expectations of future inflation are based on their most recent experiences.
d) holds that people form expectations on the basis of all available information.
e) explains why prices are flexible in the long run.

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Adaptive expectations theory
a) explains the relationship between the unemployment rate and i...
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