For each of the two models of short-run aggregate supply (sticky price and imperfect information) compare the following characteristics:

a. the nature of the market imperfection that generates the short-iun movements in output associated with unexpected movements in the price level;
b. whether prices are flexible or fixed;

Question

For each of the two models of short-run aggregate supply (sticky price and imperfect information) compare the following characteristics:

a. the nature of the market imperfection that generates the short-iun movements in output associated with unexpected movements in the price level;
b. whether prices are flexible or fixed;

Quizplus · Accepted Answer

The Answer of For each of the two models of short-run aggregate supply (sticky price and imperfect information) compare the following characteristics:

a. the nature of the market imperfection that generates the short-iun movements in output associated with unexpected movements in the price level;
b. whether prices are flexible or fixed;

For Each of the Two Models of Short-Run Aggregate Supply