Adaptive means that expected rate of inflation

Assignment Help Business Economics

Reference no: EM13898704

If expectations are adaptive it means that the expected rate of inflation

depends on the observed rate of inflation.

depends on one's previously expected rate of inflation.

will be rising when inflation is rising.

All of the above are accurate statements about adaptive expectations

Reference no: EM13898704

Questions Cloud

Economy with rigid wages and prices would suffer : Confronted with an adverse supply shock, an economy with rigid wages and prices would suffer

Which market structure has less elastic demand : Which market structure that may have two demand elasticities. Which market structure has less elastic demand?

What gis and how is it related to transportation economics : What is GIS and how is it related to Transportation Economics? What can GIS do to help transportation economists to save money? What impact might GIS have on future projects in transportation?

After wage and price adjustments-ceteris paribus : Suppose that a country's workers are universally protected by COLA's and an adverse SAS shock, occurs. After wage and price adjustments, ceteris paribus, we find

Adaptive means that expected rate of inflation : If expectations are adaptive it means that the expected rate of inflation

Which of the distributions is closest to describing the us : Answer the Question on the basis of the following Census data. Which of the above distributions is closest to describing the United States? A, B, C, or D.

What discount rate would environmental groups argue : Suppose an environmental regulation costs $400,000 today (one time payment) and would save $1 million worth of health costs 20 years from now. a) Would you recommend the program at a discount rate of 0%? 2%? 10%? b) Which discount rate would industry..

Census data indicate : Census data indicate that, as of 2008, the top fifth of all households receive about ________ times as much income as the bottom fifth

Puts out products at an initial price : A local department store puts out products at an initial price, and every week the product goes unsold its price is discounted by 25% of the original price. If it is not sold after 4 weeks, it is sent back to the warehouse.

User Account

All Pages