identify the role economists believe rational expectations play

identify the role economists believe rational expectations play

• 1. Write a 250 word posting in which you identify the role economists believe rational expectations play in determining how much impact a fiscal or monetary policy will have on the economy.

• 2. Technological changes often impact economic growth. Find a current news article about a recent technological innovation. Summarize the news article in a paragraph. In addition, state how you believe this innovation will affect the U.S. production possibilities frontier. Include a rationale for your statement. Write about 200 word.

Preview of the answer…

Economists believe in rational expectations basing their conviction on the conventional economic assumption that people act in ways that maximize their usefulness or profits. Economists apply the concept of rational expectations in determining a variety of situations in which speculation about the fiscal policies plays in determining present economy. According to Gylfason and Helliwell, (1982), the initial impression behind the financial and monetary policy is that economists have a belief that adjusting the money supply under stretchy exchange rates and fiscal policies under permanent exchange…

APA 650 words