Consider the following statement: The rational expectations assumption is unrealistic because, essentially, it amounts to the assumption

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Consider the following statement: "The rational expectations assumption is unrealistic because, essentially, it amounts to the assumption that every consumer has perfect knowledge of the economy." Discuss.

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Macroeconomics

ISBN: 9780133780581

7th Edition

Authors: Olivier Jean Blanchard

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Question Posted: Mar 04, 2024 11:00 AM

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Consider the following statement: The rational expectations assumption is unrealistic because, essentially, it amounts to the assumption

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The statement highlights a common critique of the rational expectations ...View the full answer

Macroeconomics

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