Business, 20.09.2019 03:30 katlyn10289

For example, 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 90. faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. sales from catalogs will

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For example, the sticky-price theory asserts that the output prices of some goods and services adjus...

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