Though the inflation rate changed over time

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What are expectations, and why are they important in macroeconomic models? What would you think about a macroeconomic model that assumed that people’s expectations of inflation were constant, even though the inflation rate changed over time?

Reference no: EM131079637

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Though the inflation rate changed over time : What are expectations, and why are they important in macroeconomic models? What would you think about a macroeconomic model that assumed that people’s expectations of inflation were constant, even though the inflation rate changed over time?
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