answersLogoWhite

0


Best Answer

Rational expectation are expectation formed by individuals based on past experience and on their predictions about the effects of present and future policy actions. Adaptive expectations are based only on the past and expected inflation changes slowly. by marowe f.m.

User Avatar

Wiki User

βˆ™ 13y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

βˆ™ 12y ago

Adaptive expectation is looking backward and Rational expectation is looking backward as well as gather information of current time.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between rational expectation and adaptive expectation?
Write your answer...
Submit
Still have questions?
magnify glass
imp