Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
bedau bedau
wrote...
Go to Answer
Posts: 986
Rep: 0 0
6 years ago
Which of the following are reasons why rational workers and firms may form their expectations by looking backward rather than forward?
A) The existence of long-term wage and price agreements would prevent actual inflation from responding immediately to an acceleration in nominal GDP.
B) If in the past acceleration in nominal GDP has caused inflation, then a current acceleration might be expected to increase inflation.
C) People may have no reason to believe that the acceleration in GDP growth will be permanent.
D) Both A and B.
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
Author:
Read 46 times
1 Reply
Replies
Answer verified by a subject expert
thecromthecrom
wrote...
#1
Top Poster
Posts: 1026
Rep: 13 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

bedau Author
wrote...

6 years ago
Smart ... Thanks!
Danivalda
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
macbookpro1
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1261 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 72
  
 284
  
 268
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Who will win the 2024 president election?