Rational expectations and economic theory, Microeconomics

Assignment Help:

RATIONAL EXPECTATIONS AND ECONOMIC THEORY :

Much of undergraduate macroeconomic theory is discussed on the assumption that, in the short run, the expectations of economic agents about the future values of macroeconomic variables are given. The rationale for this treatment of expectations in macroeconomic theory can be derived from Keynes' views on the nature of expectations, including his discussion in the General Theory. While Keynes’ views on the nature of uncertainty and expectations form the basis for the writings, of many Post-Keynesian economists, most of modern macroeconomic theory treats uncertainty and expectations in a radically different manner. This latter approach is characterised in economic theory by the assumption that economic agents (households, business firms and government) have rational expectations abc, macroeconomic variables. 


Related Discussions:- Rational expectations and economic theory

Free trade, is country beter off with ban on imports?

is country beter off with ban on imports?

Closesubstitute goods, Closesubstitute goods: The number of closesubstit...

Closesubstitute goods: The number of closesubstitute goods The more substitutes of good has and the more close the substitutes are, the more elastic the demand for the good. Fo

Consumer surplus, using necessary and sufficient condition explain consumer...

using necessary and sufficient condition explain consumer surplus diagrammically and mathematically?

Assignment, Telecommunications industry in South Africa

Telecommunications industry in South Africa

Explain the market failure and coordination failure, 1).Explain a coordinat...

1).Explain a coordination failure. Using the Prisoner's Dilemma example above, discuss coordination failure. 2). What's a Market Failure? Please define the circumstances under w

Balance of payments and developing economies, Balance of Payments and Devel...

Balance of Payments and Developing Economies: It is well-known in development economics that UDCs invariably start as debtor economies. In the process of development itself, t

Corporations price and output in the short run, Consider that the governmen...

Consider that the government tells a large monopolistic firm that maximizes profits that it has to pay a fee to the Reelect the President Committee same to one third of its total p

Price elasticity of demand , Describe what the price elasticity of demand i...

Describe what the price elasticity of demand is and why it is of interest in examining markets.  Might it be beneficial in the airline industry?  Why?

Protectionism and free trade, reasons for and against free trade with forei...

reasons for and against free trade with foreign sector

Assignment, Individual Assignment ECO101 - PRINCIPLES OF ECONOMICS elect...

Individual Assignment ECO101 - PRINCIPLES OF ECONOMICS electronic submission via Moodle 6 Questions 100 marks (15% of total course) All questions should be attempted. 30-50 w

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd