Rational expectations imply that households and firms are, Business Economics

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Rational expectations imply that households and firms are

Rational expectations imply that households and firms are forward looking. What does that say about the importance of a short-run downturn in demand for firm decisions? Explain why firms might hold excess labor and capital during a recession. Explain why long-term investment projects might continue even during a recession.

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Business Economics: Rational expectations imply that households and firms are

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Business Economics: Rational expectations imply that households and firms are

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