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.
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Explanation:
Suppose you want to shine a flashlight beam down a long, straight hallway. Just point the beam straight down the hallway -- light travels in straight lines, so it is no problem. What if the hallway has a bend in it? You could place a mirror at the bend to reflect the light beam around the corner. What if the hallway is very winding with multiple bends? You might line the walls with mirrors and angle the beam so that it bounces from side-to-side all along the hallway. This is exactly what happens in an optical fiber.
The light in a fiber-optic cable travels through the core (hallway) by constantly bouncing from the cladding (mirror-lined walls), a principle called total internal reflection. Because the cladding does not absorb any light from the core, the light wave can travel great distances.
However, some of the light signal degrades within the fiber, mostly due to impurities in the glass. The extent that the signal degrades depends on the purity of the glass and the wavelength of the transmitted light (for example, 850 nm = 60 to 75 percent/km; 1,300 nm = 50 to 60 percent/km; 1,550 nm is greater than 50 percent/km). Some premium optical fibers show much less signal degradation -- less than 10 percent/km at 1,550 nm.
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The river that flows through Rome is the Tiber.