Rational expectations theory suggests that the speed of adjustment Purcell correction would be very quick.
<h3>What Is Rational Expectations Theory?</h3>
The rational expectations theory is a widely used concept and modeling technique in macroeconomics. Individuals make decisions based on three primary factors, according to the theory: their human rationality, the information available to them, and their past experiences.
The rational expectations hypothesis was originally suggested by John (Jack) Muth 1 (1961) to explain how the outcome of a given economic phenomena depends to a certain degree on what agents expect to happen.
- People who have rational expectations always learn from their mistakes.
- Forecasts are unbiased, and people make decisions based on all available information and economic theories.
- People understand how the economy works and how government policies affect macroeconomic variables like the price level, unemployment rate, and aggregate output.
To learn more about Rational expectations theory from the given link
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Answer:
<u><em>1000 units for breakeven</em></u>
Explanation:
Let x be the number of units sold at breakeven.
The total sales at the point would be $2x.
Variable costs would be $1x and fixed costs are $1000.
Total costs are = $1x + $1000
At breakeven: Sales = Costs
Sales =m Costs
$2x = $1x + $1000
$1x = $1000
x = 1000 units.
At 1000 units the sales are equal to the costs ("breakeven").
1. It’s true
4 ,7 ,8 is correct
Choice-'b' says the formula for kinetic energy in words.
KE = (1/2) · (M) · (S²)
Anything less dense than water will float, like oil. Anything more dense than water will sink, like rock.
