According to ______, market participants immediately change their actions in response to anticipated price-level changes, such that no changes in real output occur.

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03-07-2021
Business

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According to ______, market participants immediately change their actions in response to anticipated price-level changes, such that no changes in real output occur.

Sagot :

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Eooyibo123idn Eooyibo123idn · Answer 1 · 2021-07-04T20:33:04-04:00

Answer:

rational expectations theory

Explanation:

Rational expectations theory is the tendency of people to behave in a rational manner when presented with economic decisions. It is a widely used theory in economics.

It's states that decisions are made primarily on the basis of information available to them, human rationality and past experience.

So when market participants immediately change their actions in response to anticipated price-level changes such that no changes in real output occur, they are acting according to the rational expectations theory

Sagot :

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