Answered

Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

True or False: If people have rational expectations, the sacrifice ratio could be much smaller than suggested by the short-run Phillips curve.

Sagot :

Martebi

People often have different expectations. If people have rational expectations, the sacrifice ratio could be much smaller than suggested by the short-run Phillips curve is a false a statement.

  • The sacrifice ratio is said to be smaller than suggested by former estimates. The short-run phillips curve will ten to shift downward and the economy would reach low inflation very fast.

Rational expectations  is known to be an economic theory. It simply states that when making decisions, individual agents will capitalize their decisions on the information that is best and available and they also learn from past trends.

Learn more from

https://brainly.com/question/20345500

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.