Essay
Sticky prices and wages are often cited as an example of market inefficiency. For example, many firms, during recessions, lay off workers. Yet many of these same firms are reluctant to begin hiring, even as the economic situation improves. Can you provide an explanation for this behavior that might demonstrate that it is rational?
Correct Answer:
Verified
Correct Answer:
Verified
Q1: List and briefly explain the three market
Q2: Explain what sticky prices are in terms
Q4: Describe what a business cycle is.
Q5: What are the basic tenets of Keynesian
Q6: What are transfer payments? Provide at least
Q7: What are Treasury bonds, notes and bills?
Q8: Define contraction (recession or slump).
Q9: How do Classical economists and Keynesian economists
Q10: Explain what a capital gain is and
Q11: What might be some Keynesian prescriptions to