The _____ hypothesis is based on the assumption that the best indicator of the future is what has happened in the past.

A) adaptive expectations
B) rational expectations
C) monetary
D) supply-side

The adaptive expectations hypothesis is based on the idea that individuals form their expectations about future outcomes based on past experiences. In other words, people believe that the future will be similar to the past, and they adjust their expectations accordingly. This hypothesis is commonly used in macroeconomic models to explain how people make decisions about consumption, investment, and other economic variables based on their beliefs about the future.