What role do rational expectations play in the Real Business Cycle (RBC) Theory's explanation of labor supply fluctuations?
1
They assume that workers only consider past wages when making labor supply decisions.
2
They disregard future policy expectations, leading to random fluctuations in labor supply.
3
They lead workers to adjust their current labor supply based on anticipated future productivity changes.
4
They contribute to maintaining consistent aggregate demand through planned consumption and saving.
5
They only influence capital allocation decisions and not labor supply adjustments.