How do new Keynesians use menu costs to help explain price stickiness in the short run?
What will be an ideal response?
New Keynesian economists argue that prices will adjust only gradually in monopolistically competitive markets when there are costs to changing prices. The costs of changing prices include informing current and potential customers and remarking prices in catalogues and on store shelves. If potential profits are small relative to the cost of changing prices, the firm won't change its price.
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A command system is a method of coordinating a firm's productive resources that uses
A) government regulations. B) discipline and punishment. C) a managerial hierarchy. D) survival of the fittest.
According to the 2005 UNDP Human Development Report child mortality (under age 5) has declined in all regions of the world except:
(a) South Asia (b) Sub-Saharan Africa (c) Middle East and North Africa (d) None of the above