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    Exam 17: Monetary Theory I: The Aggregate Demand and Aggregate Supply Model
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    How Do New Keynesians Use the Existence of Long-Term Nominal
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How Do New Keynesians Use the Existence of Long-Term Nominal

Question 85

Question 85

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How do New Keynesians use the existence of long-term nominal contracts to help explain the failure of prices to adjust in the short run?

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When contracts of this type exist, firms...

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