The owner of a national construction company has been watching current economic changes. They have gathered historical data from their company’s business experiences through up and down markets and have decided on a plan to follow as demand changes over the next year, three years and five year plan, with alternative options based on past data. Why is the owner making these type of decisions for the long-run? A. The owner is using rational expectation reasoning to change important aspects of the company to be ready for future demands of a long-term economic shift.
B. The owner is using adaptive expectation reasoning to change important aspects of the company to be ready for future demands as the long-term economy shifts.
C. The owner is using aggregate expectation reasoning to to change important aspects of the company to be ready for short-term future demands.