Question: 1 5 of 3 3 Concepts completed Multiple Select Question Select all that apply The assumptions that form the basis for the rational expectations theory

15 of 33 Concepts completed
Multiple Select Question
Select all that apply
The assumptions that form the basis for the rational expectations theory (RET) include which of the following?
Prices and wages are flexible both upward and downward.
People behave rationally, intelligently processing information to form expectations about things that are economically important to them.
Product and resource markets are highly competitive.
People behave irrationally, randomly processing information to form expectations about things that are economically important to them.
Prices and wages are sticky both upward and downward.
1 5 of 3 3 Concepts completed Multiple Select

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