At the macroeconomic level, rational expectations theory states that if the aggregate supply curve is vertical over time, people should reasonably expect this pattern.
Adaptive expectations are predictions about future values of a variable using only past values of the variable. rational expectations exist when future values are predicted using all available information.
Aggregate demand has no effect on wages or prices when aggregate supply is vertical. Causes of inflationary changes in price levels.
The rational expectations hypothesis implies that all parties (firms and employees) can predict and predict long-term economic development.
Learn more about macroeconomics at
https://brainly.com/question/14340983
#SPJ1
