Monday, February 27, 2017

Reasons why prices tend to be "sticky" or inflexible in a downward direction

  1. Menu Cost
  2. Wage Contracts
  3. Minimum Wage
  4. Fear of Price Wars
  5. Morale, Effort-Productivity 
Loanable Funds Market
  • Ig: Gross Private Domestic Investment
  • r: interest rate
  • Sm: supply of money

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