Answered

IDNLearn.com offers a user-friendly platform for finding and sharing answers. Get prompt and accurate answers to your questions from our community of experts who are always ready to help.

GIVING BRAINLIEST!!!!!!! AND 35 POINTS!!!!!!!!!

The table below reports the actual inflation rate from 2016 to 2020. Complete the table, assuming people form expectations adaptively. Give all answers to two decimals.


Look back at the table. Assuming people form expectations adaptively, which of the following statements are correct?

GIVING BRAINLIEST AND 35 POINTSThe Table Below Reports The Actual Inflation Rate From 2016 To 2020 Complete The Table Assuming People Form Expectations Adaptive class=
GIVING BRAINLIEST AND 35 POINTSThe Table Below Reports The Actual Inflation Rate From 2016 To 2020 Complete The Table Assuming People Form Expectations Adaptive class=

Sagot :

The correct options are B). when inflation is increasing from year to year, people tend to overestimate inflation, D), Monetary policy can reduce unemployment only if the policy is expected and E). when inflation is decreasing from year to year, people tend to underestimate the inflation.

What is adaptive expectations?

Adaptive expectation is an economic theory that gives the importance to the past events for the predictions of the future outcomes.

Solution:-

Year     Actual Inflation rate    Expected Inflation rate      Error

2016        3%                                       3%                                 0%

2017        5.00%                                 3%                                2.00%

2018        6.50%                                 5.00%                         1.50%

2019        4.50%                                 6.50%                         2.00%

2020       3.50%                                 5.50%                           2.00%

Adaptive expectation states that if inflation increased in the past year, people will expect higher rate of inflation in the next year.

Learn more about the adaptive expectations here:-

https://brainly.com/question/17351222

#SPJ1

Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.