Final answer:
Businesses and workers use forecasts and information provided by public-and private-sector economists when forming their expectations regarding inflation.
Step-by-step explanation:
According to the rational expectations theory, businesses and workers use forecasts and information provided by public-and private-sector economists when forming their expectations regarding inflation.
Forecasts are predictions made by economists or other experts about future economic conditions, including inflation rates. Businesses and workers may consult these forecasts to determine the likely direction of inflation and adjust their expectations accordingly.
Furthermore, businesses and workers also consider information provided by economists working in the public and private sectors. These economists analyze various economic indicators and trends to develop insights into the state of the economy and the projected trajectory of inflation. Their analysis and research findings help inform the expectations of businesses and workers.