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Social Studies, 18.08.2021 04:10 judywilkerson1114
The policy relevance of new Keynesian inflation dynamics based on the theory of small menu costs and sticky prices depends on the exploitability of the implied relationship between inflation and real GDP. Consider the reasons why the average time between price adjustments by firms is a crucial determinant of whether policymakers can actively exploit this relationship to try to stabilize real GDP.
Consider the reasons why the average time between price adjustments by firms is a crucial determinant of whether policymakers can actively exploit this relationship to try to stabilize real GDP.
If the average interval between​ firms' price adjustments is relatively SHORT
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