adaptive expectation  an expectation formed on the basis of information collected in the past
monetary reform  a new monetary policy that includes the introduction of a new monetary unit
Phillips curve  a graph that illustrates the relationship between inflation and the unemployment rate
rational expectation  an expectation that is formed using all available relevant information
reservation wage  the minimum wage a worker is willing to accept
shock  an unexpected change in a variable
time inconsistent  a characteristic of a policy or plan that changes over time in response to changing conditions