Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future? Concept introduction: People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public. There are some factors that determine the public’s beliefs: Individual inference, social learning, and the media . Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise. Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs. Finally, the media shapes the public’s informational landscape.

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Answer 1

Question

Chapter 17, Problem cFCT

To determine

Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future?

Concept introduction:

People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public.

There are some factors that determine the public’s beliefs:

Individual inference, social learning, and the media .

Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise.

Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs.

Finally, the media shapes the public’s informational landscape.

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Answer 2

Question

Chapter 17, Problem cFCT

To determine

Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future?

Concept introduction:

People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public.

There are some factors that determine the public’s beliefs:

Individual inference, social learning, and the media .

Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise.

Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs.

Finally, the media shapes the public’s informational landscape.

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem cFCT

To determine

Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future?

Concept introduction:

People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public.

There are some factors that determine the public’s beliefs:

Individual inference, social learning, and the media .

Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise.

Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs.

Finally, the media shapes the public’s informational landscape.

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem cFCT

To determine

Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future?

Concept introduction:

People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public.

There are some factors that determine the public’s beliefs:

Individual inference, social learning, and the media .

Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise.

Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs.

Finally, the media shapes the public’s informational landscape.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem cFCT

To determine

Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future?

Concept introduction:

People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public.

There are some factors that determine the public’s beliefs:

Individual inference, social learning, and the media .

Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise.

Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs.

Finally, the media shapes the public’s informational landscape.

Answer 6

Chapter 17, Problem cFCT

To determine

Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future?

Concept introduction:

People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public.

There are some factors that determine the public’s beliefs:

Individual inference, social learning, and the media .

Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise.

Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs.

Finally, the media shapes the public’s informational landscape.

Answer 7

Chapter 17, Problem cFCT

To determine

Why the distorted beliefs that alter real GDP & the unemployment rate today, might unlikely arise among households and firms again in the near future?

Concept introduction:

People’s beliefs about specific economic problems are often heterogeneous and not stable over time. Moreover, policymakers are themselves overwhelmingly drawn from the ranks of the lay public. Most politicians are not research scientists, and although they may have access to more information than the average citizen, their opinions on economic issues are shaped by many of the same forces that determine the beliefs of the average member of the public.

There are some factors that determine the public’s beliefs:

Individual inference, social learning, and the media .

Individual inference determines how people’s beliefs are updated by signals from the media, peers, or nature itself. Both rational and behavioral models of inference identify the potential for biased individual beliefs to arise.

Social learning concerns how the interactions between groups of people affect beliefs. Such social interactions can be expected to lead to unbiased collective beliefs.

Finally, the media shapes the public’s informational landscape.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 17 - Prob. 17.1LO Ch. 17 - Prob. 17.2LO Ch. 17 - Prob. 17.3LO Ch. 17 - Prob. 17.4LO Ch. 17 - Prob. 17.5LO Ch. 17 - Prob. aFCT Ch. 17 - Prob. bFCT Ch. 17 - Prob. cFCT Ch. 17 - Prob. 1CTQ Ch. 17 - Prob. 2CTQ

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Chapter 17 Solutions