Answer:
past experience is a good guide for decision making, but so is information related to possible future outcomes.
Explanation:
The rational expectations theory refer to a concept and modeling technique that is applied widely in macroeconomics. In this the individual depend their decision on three main factors i.e. human rationality, available information and the past experience
As per the rational expectations theory the future should always be taken in expectation with regard to the decisions and it is vital for the same.
So as per the given situation, the above should be the answer
It would be, 750 + 125 + 2,000 + 875 so the company's total assets is 3,750$
Hope this helps!
Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.
Answer:
Explanation:
The Solow Growth Model is a short run growth model of economic growth which shows or illustrates the changes in the level of output in an economy over time, as a result of changes in
- savings rate
- population growth rate
- rate of technological progress.
The diagram attached explains the model.
In the short run, increase in technology will increase the output per worker (looking from the microeconomic perspective) and the aggregate output (looking from the macro perspective) in the economy.
This increase in output is later stabilized in the long run.
