Final answer:
Neoclassical economics models, which include the theory of rational expectations and the concept of perfect competition, assume rapid market adjustments and perfect competition. In these models, people use all information available to quickly adjust their expectations, leading markets to swiftly reach a new economic equilibrium.
Step-by-step explanation:
The economic models that assume markets are perfectly competitive and experience rapid adjustments to a new economic equilibrium are typically referred to within the neoclassical economics framework.
One aspect of this framework includes the theory of rational expectations, which posits that individuals use all available information to form the most accurate forecasts about future events, leading to quick economic adjustments.
This idea contrasts with Keynesian economics, where markets can have sticky prices and wages that take time to adjust, causing slower movements towards a new equilibrium.
Perfect competition, a concept within this neoclassical model, is characterized by a market structure where many firms produce identical products and no single firm has the power to influence market prices on its own. Under perfect competition, firms can only decide on the quantity to produce since the prices are determined by the market.
In real-world scenarios, perfectly competitive markets and rapid equilibrium adjustments are more of idealized concepts than practical realities, as markets often exhibit characteristics such as information asymmetries, transaction costs, and imperfect competition.