Expectations are important. They frame the way we think and how we act. Importantly, expectations are one of the major determinants of consumer demand for a product or service. And consumer expenditures comprise about 70 percent of GDP. Expectations can be selffulfilling. If consumers expect future shortages of an item, they buy more of it, and this helps create a shortage. Or if people expect a future surplus, they refrain from buying. And reduced consumer demand leads to a surplus. That consumer expectations are important is underscored by the monthly survey of consumer sentiment published by the Survey Research Center...

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