Rational expectations refer to

A) the use of all available information in forecasting economic variables.
B) the use of aggregate supply to forecast unemployment.
C) the use of opportunity costs to forecast inflation.
D) disinflation.

Rational Expectations

An economic theory which suggests that individuals form forecasts about the future based on all available information, thereby influencing markets and potentially policy effectiveness.

Forecasting Economic Variables

The process of making predictions about future economic activity based on historical and current data, using statistical models and analysis techniques.

Disinflation

Occurs when the rate of inflation declines.