(a) explain how market can provide both carrots and sticks to encourage innovation.
(b) how can production in firms, rather than families contribute to the growth of living standards?
(c) ? comment by briefly discussing how useful the insights are for the african countries and whether the required institutions are present in the countries.

The sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. the actual price level turns out to be 110. faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. sales from catalogs will

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

Atrough in the business cycle occurs when