New Growth Theory (Romer & endogenous growth) the new growth theory is an economic concept, positing that humans' desires and unlimited wants foster ever-increasing productivity and economic growth. The new growth theory argues that real gross domestic product (GDP) per person will perpetually increase because of people's pursuit of profits.
Efficient Markets Hypothesis The basic efficient market hypothesis posits that the market cannot be beaten because it incorporates all-important determining information into current share prices. Therefore, stocks trade at the fairest value, meaning that they can't be purchased undervalued or sold overvalued.
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