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Forms expectations - PowerPoint PPT Presentation

Expectations and Macroeconomic Stabilization Policies

Expectations and Macroeconomic Stabilization Policies. Adaptive and Rational Expectations. Adaptive Expectations. Adaptive Expectations Expectations depend on past experience only. Expectations are a weighted average of past experiences. Expectations change slowly over time.

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Forms expectations - PowerPoint PPT Presentation

Expectations and Macroeconomic Stabilization Policies